Capital Gains

[denndy51]

It appears that the capital gains listed on a K-1 in Part III Lines 8 and 9a are showing up on Form 1040, line 7.  Is this correct?  Isn't that "double counting" the gain?

[LudwigVan_fan]

No, it is not doubling up.  Sch K-1 is an information return.  It provides information about the gains/losses from a pass-through entity.  It provides where income/losses etc., should be reported on F1040

Line 7 of the F1040 is the summary of all the S & L term capital gains/losses and goes into computing AGI/Taxable income.

Sch D and supporting schedules provides details and if there are LTCGs, then the tax is computed using tax on ordinary income + tax on LTCG.

[denndy51]

I'm still a little uncomfortable because I can't make all my capital gains numbers exactly add up, but after further review, this does seem correct.

[DianeW777]

If you see the numbers carry from your K-1 entry, to the appropriate lines of the return you should be confident to file your tax return.