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Level 2
posted Apr 1, 2022 7:54:20 AM

Final K1 for LLC Line 10 Net Section 1231 Gain

I owned 2% of an LLC which owned real estate. The property was sold and the final K-1 lists a Net Gain of 132,339 on line 10 even though I only actual received my cost basis plus a capital gain of 55,200.  Why is my gross income being increased by 132,339 instead of 55,200, the amount I actually received? 

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1 Replies
Expert Alumni
Apr 1, 2022 8:59:11 AM

Without knowing more about the LLC and the other activity since inception, it's difficult to know why you received less than the Net Gain from the property sale. If you review the info on the Schedule K-1, along with any supplemental information, you may have a better idea. However, your best option is to contact the company that prepared the K-1 and request a detailed accounting of the calculations behind the Net Gain allocation and your final distribution.