ThomasM125
Expert Alumni

Investors & landlords

For the most part, your gain will be capital gain. Ordinary gain would be from depreciation recapture which could come about if there was a gain on assets sold. Section 1250 gain would also be from the sale of assets but would be the gain less depreciation recaptured.

 

If the K-1 does not reference anything for that then you would leave those entries blank.

 

The 1250 Gain would be just for the final year, assuming that is the year the assets were sold.

 

It is fine to report no sale action on the first K-1 entry. 

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