I received a 'Final K1' with following details:
Part 3, Box 2 (Net rental real estate income): 10000
Part 3, Box 10 (Net section 1231 gain): 100000
In TT, I selected the following answers
Describe the Partnership: "This partnership ended in 2021."
Describe Partnership Disposal: "Complete disposition"
Tell Us About Your Sale: "Sold Partnership Interest"
Sale Information:
Sale Price: 110000 (from final distribution)
Partnership Basis: 45000 (50000 initial capital - 5000 prior distributions received)
This seems to be resulting in double counting.
a. On 'Schedule D' Part 2 long term gains: 65000 (110000 - 45000)
b. On 4797 line 10: 65000 (from a above)
On 4797 line 11: 100000 (from k1 Part 3, Box 10)
resulting in 4797 line 15: 165000
Capital gains seem to be double counted in 4797 (once from K1, and once from 8949) resulting in overall gains roughly 2x of the net income I generated from this.
What am I missing?
