Received two K1s due to sale of company. Do I need to enter info from both? Seems like duplicate values and increases taxes to more than capital gains tax.

[ezemsky]

I received 2 final K1s after a sale of a company and distribution of final payout.  I received one from the original company and one from a partnership formed for the purpose of facilitating the sale.  Do I need to enter the data from both K1s?  It seems to be duplicating the values and having me pay, what seems to be, way more than what capital gains taxes should be.

[Rick19744 · Accepted solution]

While I can't see the K-1's, I would guess the answer is you need to input both.  Take a look at the date at the top of each K-1 to see the time period each K-1 covers.

If these are final K-1's, then you should also determine your overall gain or loss on this investment.  You should be maintaining a basis schedule of your investment which begins with your original capital contribution and is updated annually for the applicable lines on the K-1.  Once you update this for the final K-1, you will then know your overall gain or loss.  This will be reported on Schedule D and the applicable form 8949.