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My 1231 Gain is going to the K-1 gross of the 1250 gain instead at net amount of the 1250 gain

 
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My 1231 Gain is going to the K-1 gross of the 1250 gain instead at net amount of the 1250 gain

That would be correct and it is due to the fact that the 1231 gain and unrecaptured 1250 gain are taxed at different rates. 

 

You can see the foregoing when you input the K-1 into your individual income tax return.

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4 Replies

My 1231 Gain is going to the K-1 gross of the 1250 gain instead at net amount of the 1250 gain

Are you, in fact, using TurboTax Business (presumably to prepare Form 1065)?

 

If so, can you describe exactly what you are entering and where in the program? 

My 1231 Gain is going to the K-1 gross of the 1250 gain instead at net amount of the 1250 gain

I’ve entered a real estate sale on a property for a gain of $801,351. Sch K skows line 9c with 504,337 of unrecap 1250 and below that shows the net diff of 297,014. Line 10 shows the 801,351. All good, but when I go to the K-1s it’s showing 9c at the correct membership % total but 10 is allocating the entire $801,351 amount to the members, instead of just the $297,014. Am I off here?

My 1231 Gain is going to the K-1 gross of the 1250 gain instead at net amount of the 1250 gain

That would be correct and it is due to the fact that the 1231 gain and unrecaptured 1250 gain are taxed at different rates. 

 

You can see the foregoing when you input the K-1 into your individual income tax return.

My 1231 Gain is going to the K-1 gross of the 1250 gain instead at net amount of the 1250 gain

Great! So my 1040 will properly net the 1231 gain against the 1250 before applying appropriate tax rates? Thanks for your help!

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