Selling rental property and recording the gain, form doubling up the gains

[Ruth9]

We sold a rental townhome and had a gain on the sale as follows:

Original Purchase price =  $181,000

depreciation                   =    $100,000

Basis of property          =      $ 81,000

Selling price               =    $300,000

Gain on sale -   $219,000   

I though that $100,00 of this gain would be classified as section 1250 gain (recapturing the deprecation and $119,000 would be classifed at section 1231 gain.

However the K1 is showing $219,000 as section 1231 gain AND $100,000 of section 1250 gain.  Is this not overstating the gain on the sale of the property?  

What am i doing wrong in filling out the sale information on form 4979?

[tagteam]

---

@Ruth9 wrote:

However the K1 is showing $219,000 as section 1231 gain AND $100,000 of section 1250 gain.  Is this not overstating the gain on the sale of the property?

---

No, it is not overstating the gain.

Your total gain will continue to be $219,000 it is simply that $100,000 (recapture amount) of the total $219,000 gain is taxed differently (i.e., taxed at a maximum of 25%).