Schedule K-1

Forum|Forum|5 years ago
March 3, 2021
1 reply
4 views

I received a Final K-1. It is a passive partnership with investments in real-estate. Turbo tax asks how it was disposed. The partnership funds just finished with all real estate in the fund having been sold. The form does not specify the type of disposition. what do I use?

ToddL99

Level 13

In this case, the partnership ended, disposition was not via a sale, and the "sale date" (next screen) can be 12/31/2020 or the exact date the partnership terminated (if you know).

See the attached screenshots for how this looks in the K-1 interview.

BJ9Author

Level 2

Why wouldn't it be classified as a "Complete Disposition"? If this box is checked you get a far different deduction.

gloriah5200

Level 10

Either way, you should be reporting the distribution(s) you received from the liquidation of your interest in the partnership.

A complete disposition would only be the sale of your interest whereas the liquidation of the partnership would be the disposition of all interests of the partnership.