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Eg12
Level 2

Sale of real estate partnership, schedule K-1 , capital gain, form 4797 problem

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

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2 Replies
Eg12
Level 2

Sale of real estate partnership, schedule K-1 , capital gain, form 4797 problem

 
Eg12
Level 2

Sale of real estate partnership, schedule K-1 , capital gain, form 4797 problem

OK, , If I include the withdrawal /distributions after sale, the adjusted basis could be zero at end of year. This seems to work best, I think this is correct now

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