K-1 Sales Schedule Interview question 1250 Gain

[dkmein]

I have followed other threads on how to enter K-1 sales schedule ordinary gain, partnership basis and how to rectify  the broker 1099.  On my sales schedule I also have $295 for unrecaptured section 1250 gain.  Do I enter this amount for the 1250 gain and AMT 1250 gain question in the K-1 sales schedule interview?   Do I need to change anything on the broker's 1099 to correspond for this amount?  

[RobertB4444]

Yes, enter that amount in both 1250 answers in the interview.  No, it shouldn't require an adjustment becaues of or to the 1099.

@dkmein 

[andyvu2002]

Hello, my partnership ended in 2023 when I fill out the tax return. I select the "complete disposition" option.

and enter the purchase date and sale date, the next section is entering sale information.

I enter sale price.

but I am confused on the partnership basis box.

on the sale sheet it gives me 2 options

1 -(purchase price/initial basic amount) @9379$ (this is what i paid to purchase these partners few years back)

 2- cost basic $7463

which one is the correct on to fill out on section partnership basis

lastly on box ordinary gain on the sale sheet it gives me 2 option.

1- gain subject to recapture as ordinary income

2- gain subject to recapture as ordinary income     

which one is use for option ordinary gain

thank you.

[DianeW777]

The cost basis according to your notes should be number 2 - $7,463.  The cost basis fluctuates each year depending on income or loss and some other details. It appears they  have provided you your current cost basis.

Ordinary income that would be subject to recapture is any portion of the gain that might have been attributable to depreciation or other asset where you had deductions.  The partnership should be able to provide details as to whether any of your gain would be part of recapture as ordinary income.  If you have none, then you would leave this box blank. 

You did enter the same sentence twice, however my answer would not change.

@andyvu2002 

[andyvu2002]

thank you so much for your help.

 the last question is on the box Ordinary income. on the sale sheet it provides me option to use

1 gain subject to recapture as ordinary income $2202

2 gain subject to recapture as ordinary income $2029 (adjusted for bonus depreciation)

which one should I use 1 or 2 

thank again. 

[DianeW777]

You should use number 2, since it appears you do have an adjustment increase for bonus depreciation.

@andyvu2002 

[andyvu2002]

appreciate for your help..