To be super clear here,
a. I received a 'final K1' from an LLC managing real estate.
b. The LLC sold the real estate, and I received extra distributions due to the sale
c. This distribution is included in the K1
If I chose "Disposition not from a sale", looks like form 4797 captures K1 details, and its taxed as long term gains. It completely ignores any prior year cost basis adjustments.
Is this the right way?
