Follow-Up:
- Are you saying that the K-1 line 19A amount is not what you actually received?
- There are two components to your final K-1:
- there are the amounts that reflect the entity level activity; reported on your K-1
- there is the overall gain or loss on your investment; computed by you based on your tax basis
- The $132,339 is your share of the entity level gain. This gets reported on the form 4797 and then gets reported in other parts of the return depending on the amount and where it is reported on the form 4797. In your case since this is a positive figure the amount flows to Sch D and reported as a LT capital gain.
- This gain also increases your tax basis. This is important and I am guessing this is the part of the transaction you are not understanding.
- What are the amounts you are reporting in TT for the "selling price" and "cost basis"?
*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.
