One of my partnerships sold a building (only asset in partnership) and liquidated last year. There was a capital gain from this event. The gain is also a 1250 gain. When using the software, it records both gains and adds them together. There was no 1250 depreciation used last year, so the only gain should be one or the other. What is the best way to avoid duplicate gains in the software without changing the K1 entries?
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Those two figures should not be added together, but they are taxed differently.
You can check this by looking at Line 12 of your Schedule D and Line 5 of your Unrecaptured Section 1250 Gain Worksheet.
Thank you for your reply. The 1250 gain is entered on Line 10 of the worksheet, and again on Line 11 of Schedule D. When I included my original investment basis and sale price in the requested K1 information, it added it to line 10 of schedule D. This is where the gain then was counted twice. Since posting this question, I believe I was able to figure out a work around.
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