I joined a real estate partnership, in 2020
Invested 25K
There are were schedule k-1 line 20 Z rental income losses each year.
Total loss of - $16992
In 2022, partnership was sold for a net distribution of $31, 371
So in principal, I have a net gain of about 6.4K
I have been entering all of the schedule K -1 into TurboTax every year.
Now this year for the sale, I’m having trouble.
TurboTax lists from form k-1 line 10 schedule 1231
Ordinary gain of $23363 On form 4797. However, this form does not allow any editing for basis, etc..
When I include the sale with an adjusted basis during the interview for the schedule, I’m not able to get any reasonable result. My Understanding is that I’m supposed to use an adjusted basis of 0 due to the losses and the withdrawal /distributions after sale, , so the adjusted basis could be zero at end of year.
I understand that TurboTax may want to include the sale in two different places, but how do I get a reasonable net gain of roughly 6.4K, currently I got more than 20 K added to my income due to the 4797 form. edited
