topic K1 question in Investors & landlords

K1 question

adesai420 — Thu, 15 Oct 2020 09:56:53 GMT

Received a final K1 from the sale of a hotel in which I was a partner.

a. Would I report it as a "sold partnership interest" in TT?

b. Section L has beginning capital as 34,318; current year net income as 41,941; withdrawals and distributions as -76,028 and ending capital account as 231

c. What should I be entering for Sale Price and Partnership basis?

d. Box 9c is 4054 and Box 10 is 43105

Re: K1 question

M-MTax — Thu, 15 Oct 2020 15:47:31 GMT

Need to know your outside basis.....the k1 gives you your inside basis. how much did you invest?

Re: K1 question

Anonymous — Thu, 15 Oct 2020 16:42:29 GMT

can't really say. you would have to take the original amount invested and go through every k-1 to determine amounts to add or subtract from your investment to arrive at your basis. a box like 9c does not affect basis while box 10 does. that's because in prior years the IRS allowed schedule L to be reported on a basis other than tax basis.

you see the problems are you say schedule L income is 41941 while box 10 is 43105 - on a tax basis schedule L they would be the same and you say withdrawals and distributions on schedule L is 76028 that amount on a tax basis schedule L should agree with box 19. it is possible that the return preparers made adjustments to schedule L so the $231 is your tax basis for which you got $0. however, without going through all the prior K-1's there is no way we can be certain that $231 is your tax basis.

Re: K1 question

adesai420 — Thu, 15 Oct 2020 18:40:29 GMT

The investment amount was 56220.00 (on 8/21/14)

if this helps....

total distributions to date 5622

final distribution 76028 (property sold 2/28/19)

Grand total distributions 81650