@Rick19744and any other with expertize,
I received a Final K1 (different from the one that I already asked about). I have the basis caculated. I have a few additional questions about enterering the K1 data into Turbotax.
First, this was just a simple deal where we sold the single apartment building owned by the parternship. I assume this would be considered a "sale" not a "liquidation." Correct?
Second, line 9c shows an Unrecaptured Section 250 Gain of 10,211. I've duly entered this in the appropriate field for line 9c. However, when I'm entereing the information for the sale, I get this screen:
Should I enter the 10,211 figure from the K1 line 9c in the box above in the picture that asks for 1250 Gain?
Similarly, later in the software flow, I get the following two screens:
The K1 doesn't explicily describe the 1250 gain as coming from a disposition of an interest in a parternship. So wondering if I should put yes or no on the screen asking that question and -- if yes -- then put the same 10,211 figure in the field asking about the amount from a disposition in a partnership interest. Thanks for any assitance you can provide,
My thoughts on your questions:
My thoughts on your questions:
@Rick19744, thanks for your response. After I click "complete disposition," I get several options to choose from, incluidng both "sold partnership interest" and "liquidated parternship interest." Regardless of which I choose, I get the same screen afterwards:
I agree with your logic and will select liquidated. Thanks for clarifying about where to put the 1250 gain in the software as well.
I hope this will be the last of my questions on K1 sales, tax basis, etc. this year. I want to thank you for all your help. Truly appreciated.
the k-1 is reported exactly as is. the disposition i see raises a question. generally if you were always in the partnership and there were no adjustments to your ownership the liquidation proceeds you receive should equal your tax basis so there would be no gain or loss .
simple example
you put in 5K as capital contribution
income reported over term of partnership $4K
distributions other than liquidating distribution 6k
leaves a basis of 3k and that's what should have been received upon liquidation - maybe even les since sometimes there's a holdback for potential late bills or adjustments.