Sale of Business Section 1231 Gain

[joanijarrad]

Sold our restaurant in 2020

Sales Price 80000

K1 Shows the following

Box 1 (17,499)

Box 9 52,113

Box 15A (416)

Box 15B (1,211)

Total Income when I review is $129,710 (Which includes the capital gain of 52,113)

When I run the error check - it asks for Sale Price, Basis & depreciation from 4797

When I put these amounts in it doubles my income for the capital gain and shows that I owe alot of money

Please help

[ErnieS0]

It sounds like you are entering the sale twice. Your K-1 entries suggest the S-Corp reported the sale of the restaurant on the corporate return and passed along the capital gain to you.

The questions TurboTax is asking may refer to the gain or loss from your sale of shares of the corporation.

If the corporation ended with the sale of the restaurant there may be a gain or loss from your investment separate from the sale of the restaurant.

If the corporation is still ongoing, uncheck "The corporation ended in 2020."

[joanijarrad]

Thank you Ernie - It is true that the K1 did report the sale of the restaurant on the corporate return and passed the gain onto me from the K1, but why would there be an additional gain or loss from my investment separately for the sale - In essence I would be hit twice

[joanijarrad]

The corporation did end with a sale of the restuarant