Capital gains from LLC K-1 for personal taxes
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mmoran60
Level 2

Capital gains from LLC K-1 for personal taxes

We have a gain/loss form sale of a home via an LLC K-1.  Box 9a shows the LT gain on the sale, but I am also asked about the sale price and cost basis on an earlier page for the K-1.  If I enter information on that page and box 9A, I seem to be taxed twice for the transaction.  How do I handle this properly?  

2 Replies
Anonymous
Not applicable

Capital gains from LLC K-1 for personal taxes

was the partnership terminated/liquidated?  if so what did you receive upon termination?.  if you have always been a partner that always had the same ownership %'s for profit, loss, and capital and there were no special allocations, most of the time what you receive upon termination is the same as your basis just before termination so there is no gain or loss.    otherwise, you need the value of the liquidating payment and compare that to your basis to know if you have a reportable gain or loss.    

but I am also asked about the sale price and cost basis on an earlier page for the K-1.  this would seem to indicate that you marked final K-1 and the partnership terminated. as an oversimplified example say your basis at the beginning of 2019 was $24,000. the k-1 reported net income (all items of gain and loss) of $13,000. your basis would now be $37,000. so if the total distributions were cash and totaled $$37,000 you would have no gain or loss. 

 

 

mmoran60
Level 2

Capital gains from LLC K-1 for personal taxes

The home, which was the sole asset in the LLC, was sold, and there was a significant gain on the property. so that on line 9a, the gain is shown.   Our percentage in the LLC remained the same @ 33.3%.  The proceeds from the sale of the home/asset was then shown  as distributions on line 19A.  The LLC was then dissolved post sale. My dilemma is that I show the details of the gain on the "Enter sale information" in Turbotax as well as the 1065 K-1 worksheet section, it appears to be taxing it twice.  I am unsure how to do it properly and avoid this.  Thanks for your input.

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