Based on the information in your post and K-1:
- Don't get hung up on the nomenclature
- For purposes of the "sale" component, it appears that there is no gain or loss
- "Sales" price is the $52,666 reflected as the distribution
- Cost basis is also $52,666 - beg of year $26,389 plus the current year income of $26,277
- You should also enter the Section 1250 recapture amount of $2,625; there should be a box to enter this as well
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
