Hello,
I began investing in real estate as a passive investor a couple of years ago, and I received a distribution for the first time this year, with the Schedule K-1 calling out the gain. I noticed that when I was entering the information from the K1 in Turbo Tax, it calculated the tax on the gain at ~31% tax rate. I thought (and I could be wrong) that long term capital gains as an real estate investor maxed out at 20%, so am a bit surprised to see this tax rate.
Any thoughts as to why this is occurring?
Thanks in advance.
