topic Re: Final K1 - Sale Price and Basis calculation (Multiple TT live agents have offered wildly different advice) in Investors & landlords

Final K1 - Sale Price and Basis calculation (Multiple TT live agents have offered wildly different advice)

sakethuk2 — Sun, 12 Oct 2025 15:36:47 GMT

Total novice situation and I apologize for not being able to get this right. I have worked with 4 TT live agents so far and each gives different advice.

Situation:

Invested in a partnership in Sep 2020 for $30K
Additional capital call in Nov 2023 for $3.6K
Return of capital (Distributions)
- $33.6K in July'24
- ~$17K in July'24
- ~1.4K in Dec'24
- Total in 2024: ~$52K
- Final K1 for 2024 received in Sep 2025
Basis (capital account) calculated at start of 2024: $26K
Net 2024 income: $27K
Distribution: $52K
Ending Basis 2024 (capital account): 0

I have followed TT prompts as follows:

Partnership ended in 2024
Complete disposition
Sold Partnership Interest

Now I am at the Enter Sale Information and I am bamboozled (as are TT Live Agents) on what to enter on the Sale Price and Basis.

On the one hand, it seems like there wasn't a sale, since the assets were liquidated and distribution made. Which makes the sale price and Partnership basis as 0. On the other had, I wonder if I should be using $52K as the sale price and $26K as the basis. Or is it $52K as the sale price and $0K as the basis?

Tax Gods, I put myself at your mercy. :(

Re: Final K1 - Sale Price and Basis calculation (Multiple TT live agents have offered wildly different advice)

sakethuk2 — Wed, 15 Oct 2025 00:43:26 GMT

@Rick19744 - please help :(

Re: Final K1 - Sale Price and Basis calculation (Multiple TT live agents have offered wildly different advice)

Rick19744 — Wed, 15 Oct 2025 15:18:45 GMT

Based on the information in your post and K-1:

Don't get hung up on the nomenclature
For purposes of the "sale" component, it appears that there is no gain or loss
"Sales" price is the $52,666 reflected as the distribution
Cost basis is also $52,666 - beg of year $26,389 plus the current year income of $26,277
You should also enter the Section 1250 recapture amount of $2,625; there should be a box to enter this as well

Re: Final K1 - Sale Price and Basis calculation (Multiple TT live agents have offered wildly different advice)

sakethuk2 — Wed, 15 Oct 2025 15:47:35 GMT

Thank you sir! This makes it clear.

I was getting conflicting advice from TT live support and got myself spun up on it.

Re: Final K1 - Sale Price and Basis calculation (Multiple TT live agents have offered wildly different advice)

Rick19744 — Wed, 15 Oct 2025 17:06:10 GMT

Welcome