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Will turbo tax live premier agent be able to calculate my tax basis for my Schedule K-1 or would I need to upgrade to full service?
I started filing my taxes and was in the process of uploading my Final Schedule K-1, selected Complete Disposition -> Liquidated Partnership Interest, I am not sure how to fill in the details for the next form:
Sale Price
Selling Expense
Partnership Basis
Ordinary Gain
1250 Gain
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You will not find assistance on determining those amount in the TurboTax program. You have to calculate those figures outside of the program and input them.
The sale price is what you were paid for your interest. The selling expenses are brokerage or similar fees you had to pay from the sale price receipt.
Your partnership basis is what you paid for the investment, plus/minus the income or losses reported on your tax return during the years you owned your interest and plus/minus additional monies you put in or took out of the venture. You can see this article on basis calculation:
https://smallbusiness.chron.com/calculate-partners-tax-basis-26209.html
Ordinary gain is the portion of the gain on sale of assets equal to the accumulated depreciation on those assets and section 1250 is the rest of the gain on the sale of assets.
For instance, if you sold an asset for $1,000 and it cost $500 and you had taken $200 of depreciation on it, your gain on sale would be $700 ($1,000-$500+200.) The ordinary gain would be $200 (the depreciation) and the section 1250 gain would be $500 (the rest of the gain of $700.)
Thanks for your reply @ThomasM125 . Yeah, I dont have a lot of accounting background and I doubt if I will be able to calculate these correctly myself. If I dont want to do this calculation myself do you think the Live agent in turbo tax can do these calculations for me or would I need to upgrade to a full tax service package from turbo tax?
It probably won't be possible for a TurboTax agent to do the calculations for you, as that is an accounting exercise, not a tax preparation task. The agent could only assist you in what information is required and how to proceed through the calculations.
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