K-1 and Dissolved LLC

Forum|Forum|4 years ago
February 11, 2022
1 reply
2 views

Can someone please help with K-1 information and an LLC being dissolved. This was a rental house that was sold and the LLC only had 2 members. TurboTax is asking for:

- Sale Price. What number represents this on the K-1? Or is this the home closing price (net or gross?)?

- Selling Expense. Are these the closing costs of selling the house?

- Partnership Basis. Is this the 'Beginning Capital Account' on the K-1?

- Ordinary Gain. Is this Box 1 of the K-1?

- 1250 Gain: Is this Box 9c?

What about the figure I have in Box 10?

I'm hoping someone can help and address these specifically ... I'm on the phone now with the 'Live Tax Expert' and they have no idea 😞

Thanks.

Not A Product Question

Mike9241

Level 15

are you working on the partnership return or the K-1 it issued to you for the LLC.

if you are trying to enter the k-1 for your 1040 info you are looking at the wrong section in Turbotax

k-1 entry is started in the business items interview section - all info needed is on the k-1 (no sales price no cost of sale to enter)

it looks like your trying to enter the k-1 through the Rental property section - it doesn't go there

on the other hand, if you are working on the partnership return you need TurboTax Business to do the return.

Mike9241

vtpecoAuthor

Level 2

Thanks Mike9421. I am working on the Personal K-1. When I tell TurboTax I have a K-1 to enter and that the business has been completely dissolved, it prompts me for the dates it was started and the dates it ended. It then asks me for all that other information. Even if I go to the K-1 directly and enter all the K-1 box information, TurboTax still wants that other info (Sale Price, Selling Expense....). It greatly affects my taxes if I enter / or not enter data for those questions.

Rick19744

Level 13

You have an investment in an LLC and should have been maintaining a tax basis schedule of your investment.

Since you are telling TT that you no longer have this investment, TT is wanting to know you tax basis information along with the date of liquidation.

Based on the limited information:

Your selling price is the liquidating distribution you received from the LLC
Your cost is your tax basis in the LLC
In summary, TT is NOT asking about the sale of the rental property as that was handled at the LLC level and is reported on the K-1. TT is asking about your investment in the LLC to determine an overall gain or loss on this investment.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.