Do I need to file Form 7217?

[mellynlee1]

(I actually posted this question as a reply to another post. So I apologize for reposting, but I wasn't sure when/if anyone would reply to the other post.)

TurboTax Desktop Premier states that I may need to report the Property Distributions from my K-1, and continues to state I need to file this new form 7217 because this is being reported on your K-1 in Box 19, Code C-Other Property.

I do have an amount listed under code C, box 19.

However, I saw a post that stated:

1. Exclusions: Do not file Form 7217 if the distribution consisted only of money or marketable securities treated as money under section 731(c).

The K-1 I received is from an LLC (I am a domestic, limited partner) that buys land, and later sells this land. I invested in this LLC by investing $ to help purchase the land. I have now received a final K-1 because the LLC has sold all of the land, the partnership no longer exists, and they sent me a check for the final distribution. Does this qualify as the exclusion since I invested $, and they have now given me $ from my "share" of the sale?

In other words, do I need to file Form 7217?

[DawnC · Accepted solution]

If the distribution consisted on only money, you do NOT need to file Form 7217.  

Form 7217 is filed by any partner receiving a distribution of property from a partnership in a non-liquidating or liquidating distribution to report the basis of the distributed property, including any basis adjustment to such property as required by section 732(a)(2) or (b).

File with your annual tax return a separate Form 7217 for each date during the tax year that you received distributed property subject to section 732.   Do not file Form 7217 if the distribution consisted only of money or marketable securities treated as money under section 731(c).  Also, do not file Form 7217 for payments to you for services other than in your capacity as a partner under section 707(a)(1) or for transfers that are treated as disguised sales under section 707(a)(2)(B).  From Form 7217 - instructions.