Investors & landlords

@DianeW777 

@RobertB4444 

Good morning Diane,

Sorry it has taken me a few days to get back to you.  As usual, I greatly appreciate your feedback!

I do have a few follow-up questions:

Loan Fees:

1. In general for a 1031 Exchange, for the relinquished property, under the Property Profile section, you do NOT say that you Sold the property, because you really exchanged it.  I believe we've already talked about this point, but please confirm.
2. However, under "Assets/ Depreciation" section for that relinquished property, I believe you DO indicate that you "Stopped Using this Asset in 2023"...and then enter in the "Date of Sale or Disposition" with the "Date Acquired" date?  I believe you would answer Yes whether that is for the actual house depreciation line item, or for the depreciation of any loan fees.  To me this step is necessary to turn off these line items before creating new line items for the same depreciable assets under the respective replacement properties (after remaining values are apportioned) for the remainder of the original depreciation schedules.  Please confirm.

Partnership LLC:

Earlier this week I received the following items from the LLC's CPA: 

• "Schedule K-1 (Form 1065)"
• "Partner's Basis Worksheet"
• "Analysis of Partner's K-1, Current Year Net Income (Loss) Worksheet"
• "2023 Colorado K-1"
• "2023 Colorado Nonresident Partner or Shareholder Agreement"

The nonresident form applies as I live in California, but the LLC partnership exists in Colorado, as the new home build exists in Colorado. 

After reviewing these forms, and trying to enter all the data into Turbo Tax, these are my questions:

1. The K-1 (Form 1065) I received from the LLC's CPA has a section "M - Did the partner contribute property with a built-in gain (loss)?".  They checked the "No" box.  I'm not sure where this entry exists on the TurboTax form.  Can you please guide me to that location?
2. The LLC's CPA has "Final K-1" as checked, which makes sense because the LLC is no-longer needed as the house was sold in 2023.  However, I want to confirm the choices for the sub-boxes that are in the "Describe the Partnership" section of Turbo Tax:
   1. I chose "This partnership ended in 2023" of the available choices.  Please confirm (there are too many other choices to type them all :-).
   2. Then it asks "Describe Partnership Disposal".  For now I checked the "No entry" box, as the sub-boxes that the other choices lead you to don't seem to apply.  The other choices took you down the path of selling your partnership interest.  Please confirm "No entry" is correct (or at least ok to select). 
3. Do these documents need to be entered into TurboTax or are they just for my reference?  "Partner's Basis Worksheet" and "Analysis of Partner's K-1, Current Year Net Income (Loss) Worksheet".
4. Where do I enter the data from these forms?  "2023 Colorado K-1" (DR106K) and "2023 Colorado Nonresident Partner or Shareholder Agreement" (DR107).  I downloaded the Colorado state file from Turbo Tax.  I imagine the data from these forms goes somewhere in that Colorado section?  Can you please guide me to the right area?  The only data that seems pertinent, at least to the proceeds from the house sale, is the DR106K which has "Non-Resident" checked and my share of the proceeds on line item "7 - Net capital gain".  Everything else is blank.
5. After completing the majority of the Schedules K-1 section (at least entering the gains), while the taxes due did increase as expected, when I close out of that section to the point of the "Business Items" summary section, the Schedules K-1 line item still states a $0 value.  This seems odd not to reflect the additional taxes due from this line item.  Thoughts?

I'd greatly appreciate your kind insight on these items.

Thanks so much!

Jamie