This year we sold via a brokerage house a business that also issues us a K1. The sales had short term (4% of the total sale) and long term (96% of the total sale) gains. I imported the short term and long term gains from the brokerage firm, but I am struggling with the K1 interview portion in TT.
In addition, I am afraid I am being double taxed and / or taxed at the wrong rate as there are short term and long term gains when filling out the K1 portion of TT interview
1) I received a 2021 Sales Schedule and a K1 from from the company.
2) Part III of the K1 only shows an entry box 1 (loss) and box Box 20 (there is a section 751 gain, which is the same amount as the amount on the sales schedule under 'gain subject to recapture as ordinary income. There is a positive amount for 'excess taxible income', and positives under 'gross receipts for 448(c) and Unrelated business Taxable income purposes)
3) The sales schedule shows a cost basis (which they say should be included in form 8949 Column E), Gain subject to recapture as ordinary income (Form 4797 Part II Line 10, Form 8949 Column G). I keep going back and forth between the TT interview and Form 8949 and I cannot seem to understand how to enter the numbers correctly. In the Sales Information Interview of TT.
4) How do I treat short term and long term gains for sales as it relates to a K1 company as most of my investment was long term
