topic Re: Schedule K-1 in Get your taxes done using TurboTax

Schedule K-1

BJ9 — Wed, 03 Mar 2021 19:24:12 GMT

I received a Final K-1. It is a passive partnership with investments in real-estate. Turbo tax asks how it was disposed. The partnership funds just finished with all real estate in the fund having been sold. The form does not specify the type of disposition. what do I use?

Re: Schedule K-1

ToddL99 — Wed, 03 Mar 2021 22:30:17 GMT

In this case, the partnership ended, disposition was not via a sale, and the "sale date" (next screen) can be 12/31/2020 or the exact date the partnership terminated (if you know).

See the attached screenshots for how this looks in the K-1 interview.

Re: Schedule K-1

BJ9 — Fri, 05 Mar 2021 17:36:15 GMT

Why wouldn't it be classified as a "Complete Disposition"? If this box is checked you get a far different deduction.

Re: Schedule K-1

gloriah5200 — Tue, 09 Mar 2021 01:56:49 GMT

Either way, you should be reporting the distribution(s) you received from the liquidation of your interest in the partnership.

A complete disposition would only be the sale of your interest whereas the liquidation of the partnership would be the disposition of all interests of the partnership.

Re: Schedule K-1

BJ9 — Fri, 12 Mar 2021 16:02:28 GMT

So is it then classified as a "Disposition was not via a sale" in the TurboTax question screen?

Re: Schedule K-1

AmyC — Mon, 15 Mar 2021 21:13:23 GMT

Yes. If you sold your share of the business to create your final k-1, then it was a sale. If the whole business was sold, then all got a k-1 from a sale. Otherwise, business ended in a disposition.