Final k-1 from 1065 partnership gain duplicated.

[shimon]

I received final K-1 form from partnership, LLC that I own with my wife 50% each. the K-1 marked as Final K-1.

and the partnership received 1099-S.
My question is about how to enter the K-1 in my personal tax return.

I selected the K-1 in TT premier, selected general partner, this partnership ended in 2023, complete disposition, sold partnership interest. Next, I entered purchase and sale date. At this time, I was asked to enter sale information and see a review, see attached.
Next I selected to enter in Line 9c, 10.  In my case I entered for line 9c $28,200, and line 10 $62,429
I entered the same numbers for my wife from her K-1

Once I was done, I reviewed Schedule D and Schedule 1 and found of income of $124,856 was duplicated on Schedule 1 and Schedule D.
I don't understand the reason for that. It might be that I should not have selected "this partnership ended in 2023" since the gain is listed on K-1, line 9c and line 10.

Thanks

[shimon]

If I select "Disposition not via sale", the duplicate was removed.

Is that correct to use?

Thanks

[PatriciaV]

Since the sale was reported on the partnership return, you would not report it again on your personal return. Your best option is to report that the partnership ended on the page "Describe the Partnership" and "No Entry" for "Describe Partnership Disposal." This will avoid any questions about the sale on your return.

[shimon]

Thanks for your answer.
After entering K-1 line, 9c uncaptured section 1250 gain $28,200, TT in the next window asked me
"Tell us about your 1250 gain. Is it coming from uncaptured 1250 gain from
--- Estate, Trust...
--- Disposition of an interest in a partnership.

I selected yes and on the next page I entered $28,200 under Disposition of an interest in a partnership.
Would that result in duplicate entry for section 1250 gain? since it was entered already in K-1, line 9c ?

Thank you.

[PatriciaV · Accepted solution]

No, these questions are used to categorize the gain reported on your K-1 for Schedule D. As long as you don't report any disposition information for your investment, the gain should not be duplicated.