topic Sale of rental property in K1 in Business & farm

Sale of rental property in K1

dnordin — Tue, 14 Jul 2020 22:04:34 GMT

I share a partnership with my family for a rental property in Vail, CO. In 2019, we sold the property, however, the partnership is still in tact. Does this mean I need to check the box that says "Disposed of a portion of my interest in partnership in 2019"? It's not clear to me if this means I sold my portion of the partnership or that I sold an asset within the partnership. Thank you for a prompt response.

Re: Sale of rental property in K1

AmeliesUncle — Tue, 14 Jul 2020 23:08:17 GMT

No, don't check that box. That is if you sold your partnership interest.

Re: Sale of rental property in K1

dnordin — Wed, 15 Jul 2020 00:37:58 GMT

That's what I thought. Thank you for the confirmation. Next question: We donated about $16000 worth of furniture and other items so for the 4 of us, that's $4000 each. Do I include that in regular deductions? I live in Georgia and the furniture was donated to a charity in Colorado. When I entered the zip code of the charity, TT told me the zip code was no good. Am I doing something wrong?

Re: Sale of rental property in K1

AmeliesUncle — Wed, 15 Jul 2020 00:43:37 GMT

If the Partnership made a charitable contribution, that goes on the Partnership return, and your portion will show up on your K-1.

However, did the Partnership get an appraisal of the furniture? That is required if it is over $5000. If no appraisal was done, I don't think that is any charitable deduction allowed.

Re: Sale of rental property in K1

DawnC — Wed, 15 Jul 2020 00:50:08 GMT

Make sure the state code is correct - the zip code error is almost always a problem with the state code.

Re: Sale of rental property in K1

dnordin — Wed, 15 Jul 2020 16:26:24 GMT

Where it says "...Partners has charitable deductions", I enter the $4,000 where it says "Charitable Deductions" but it doesn't move the needle on my numbers. Is that the wrong place to put it?

Re: Sale of rental property in K1

AmeliesUncle — Wed, 15 Jul 2020 16:42:43 GMT

@dnordin wrote:
Where it says "...Partners has charitable deductions", I enter the $4,000 where it says "Charitable Deductions" but it doesn't move the needle on my numbers. Is that the wrong place to put it?

So was there an appraisal done for the charitable contributions?

Charitable contributions are an Itemized Deduction. So if your Standard Deduction is larger than all of your Itemized Deductions, that charitable contributions won't reduce your tax.

Re: Sale of rental property in K1

dnordin — Wed, 15 Jul 2020 16:54:28 GMT

Yes, we had an appraisal. It was all of the contents of our fully furnished condo as well as multiple skis/boots/clothing, etc.

I'm not sure I'm following your comments. I already itemize deductions. Originally, I had included the $4000 on my personal deductions which increased my refund; however, based on the above, I removed it, which lowered my refund, and added it in my K-1 information which did nothing to my refund. So should this be included in my Schedule A Form 8283 Noncash Charitable Contributions or somewhere in the K-1 and if the latter, where?

Re: Sale of rental property in K1

AmeliesUncle — Wed, 15 Jul 2020 17:22:26 GMT

I guess I'm unsure if the K-1 section fully does things or not. Hypothetically, it should automatically put the charitable deduction on Schedule A. Is it doing that? If not, you may need to manually enter it on Schedule A.

Re: Sale of rental property in K1

dnordin — Wed, 15 Jul 2020 17:29:06 GMT

It does not automatically add it to the Schedule A so I'll go ahead and add it there.

Thank you for all of your advice.