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Level 5
posted Oct 5, 2022 9:49:44 AM

Need help filling out information for K-1

Trying to get help with filling out a TurboTax form for my K-1.

I received a final K-1 for a limited partnership (non public), and I did NOT receive a 1099-B for it, and it was a land investment. I invested $ in it in 2018, and in 2021, the land was sold, and I received a final check from them and the partnership is now dissolved.

 

I have entered the information for this K-1 into TT, up to the purchase and sales dates. 

The next form that comes up asks for the following information:

Regular Gain or Loss

Sale Price: Is this the amount of the final (one and only) check I received from the partnership when it ended?

Selling Expense: Not sure what this is...I don't believe there were any

Partnership Basis: Is this the cost basis of this investment? If I add my initial investment in 2018 + all income noted in K-1's from 2018-2021, including capital gain (2021) - distributions listed in 2021. This will equal the SAME as above Sale Price?

Ordinary Gain:

1250 Gain:

 

Can someone tell me what I should enter into the above lines?

 

OR, should I ignore this page and enter the information in the Federal->Wages&Income-> Investment Income section of TT instead? (I was told to do this in an earlier post)

 

Thank you!

0 3 444
1 Best answer
Level 13
Oct 5, 2022 2:56:07 PM

There is another thread on this, however, I will provide some direction:

  • Based on your facts, you appear to know your tax basis.
  • You need to update your tax basis for 2021 for all the applicable items on the K-1 EXCEPT the distribution.  This figure becomes your cost basis.
  • Your "selling" price will be the distribution reflected on your final K-1.
  • Any difference will be the gain / loss on this investment.  TT will report this on form 8949 and Schedule D.
  • Your K-1 would have reflected any ordinary gain or Section 1250 gain.  Since this is land, there is most likely neither of these types of gain since land was not a depreciable asset.  As such, those boxes would be blank or zero.

3 Replies
Level 15
Oct 5, 2022 10:07:08 AM

@Rick19744 

Level 13
Oct 5, 2022 2:56:07 PM

There is another thread on this, however, I will provide some direction:

  • Based on your facts, you appear to know your tax basis.
  • You need to update your tax basis for 2021 for all the applicable items on the K-1 EXCEPT the distribution.  This figure becomes your cost basis.
  • Your "selling" price will be the distribution reflected on your final K-1.
  • Any difference will be the gain / loss on this investment.  TT will report this on form 8949 and Schedule D.
  • Your K-1 would have reflected any ordinary gain or Section 1250 gain.  Since this is land, there is most likely neither of these types of gain since land was not a depreciable asset.  As such, those boxes would be blank or zero.

Level 5
Oct 5, 2022 3:46:14 PM

Thanks so much for your reply!

So...I have had a few posts regarding this issue, and several different replies, but as far as I can tell, another way to do this is to just put ZERO for the 'cost basis' and 'sales price', and INSTEAD put all the cost basis and sales information in the Investment Income section instead.

 

I hope this is correct. If someone thinks this is not correct, please let me know. Thank you!