- sales price: use the proceeds from the broker's statement? YES
- partnership basis: use the cost basis on the K-1 sales schedule? YES + THE ORDINARY INCOME RECAPTURE
- gain recapture as ordinary income: the amount shown on the K-1 sales schedule also equals the Section 199 income on Box 20 of Part III; do I enter that amount in TT in both Box 20 and as the gain recapture?
TURBOTAX WHILE PROVIDING FOR THE 199A INFO IN BOX 20 DOESN'T USE IT. LATER ON IT WILL ASK
DOES YOUR K-1 HAVE A CODE Z IN BOX 20 TO WHICH YOU ANSWER YES.
WHEN YOU ANSWER THE QUESTION ABOUT WHERE THE 199A INCOME COMES FROM. AND CHECK BUSINESS INCOME IN THE NEXT WINDOW. THERE'S A DROPDOWN OPENS WITJ LINES FOR ORIDINARY BUSINESS INCOME AND A LINE FOR TOTAL ORDINARY FAIN FROM 4797 (THATS THE RECAPTURE REPORRTED ON LINE 20AB AND THE SALES SCHEDULE.
- how do I handle the two amounts on the K-1 sales schedule as "adjusted for bonus depreciation"
THAT DEPENDS ON YOUR STATE FILING. SOME STATES ALLOW THE FEDERAL AMOUNT, SO YOU CAN IGNORE IT. SOME STATES DON'T ALLOW ANY OR ALLOW AN AMOUNT DIFFERENT FROM THE FEDERAL.
THIS WOULD INCREASE YOR TAX BASIS FOR FEDERAL PURPOSES IF YOUR STATE IS AMONG THE LATER.
"cumulative adjustments for basis" (which is negative) and "gain recapture as ordinary income"?
- one puzzling thing is that there are two gain recapture amounts on the sales schedule which differ :box 7 and box 11. Where do we record each different gain amount?
BOX 11 IS AN ADJUSTMENT OF DEPRECITION FOR AMT PURPSES. IN THE SALES SECTION, YOU ENTER THE AMOUNT AS BASIS IN THE AMT COLUMN THEN REDUCE THE ORDINARY AMT GAIN BY THIS AMOUNT.
- will these amounts automatically and accurately flow to the Forms 8949. 4797, 6251 YES that are mentioned on the sales schedule or will I have to adjust them?
