My siblings and I sold our little company this year which was an LLC for a building we owned to another company we operated out of it which was an S-Corp. We inherited both.
Since it was the final K-1 for the building, TT is bringing up a screen asking the date we purchased it and I am assuming that would be the date the deed was signed over to us correct? I am assuming this is for the computation of capital gains tax.
After entering that information, TT brings up another screen in which I have never seen before. (Attached image)
I am not exactly sure where I get the "basis" amount from nor the "Ordinary Gain" or "1250 Gain" they are asking for. And whether these amounts are entered under the "Regular" or "AMT" column.
Can you help me find this information on my K-1 1065 form?
Thanks in advance
The information you need should be included with Schedule K-1, perhaps on a supplemental information page. If you didn't receive this information, you will need to contact the person/firm who prepared the LLC return to request the needed info.
Because you owned a portion of the LLC and not the building itself, you need the allocated numbers from the LLC return.
We owned the building under the LLC and received final K-1 1065. We also owned the S-Corp business that was operated out of it. We sold the building in 2024. Sorry if I muddied the water when trying to explain that in the original post.
Please clarify:
1) What entity owned the building when it was sold?
2) Which entity sent you Schedule K-1 related to the screenshot you posted?
3) Are you preparing your personal tax return or a business return?
I am filing my personal taxes using TT. I was partial owner (LLC) of this building and our accountant sent this Final K-1 to me so I could complete my personal taxes. The screenshot is within TT after I enter that the business (LLC) was dissolved, and property liquidated. Thanks for the reply
Based on this additional information, you need more details from the firm that prepared the LLC return in order to complete the Schedule K-1 entry. In most cases, a second page of "Additional Information" is included when an LLC reports the sale of assets held by the LLC. Without that information, you won't be able to accurately claim your allocated portion of the gain or loss on the sale.