"On the k-1 disposition section for sales price use the ordinary income (sometimes you’ll see a column with the “751” or the words “Gain subject to recapture as ordinary income” or similar wording. This info comes from the supplemental sales schedule that should have been provided. Its also now on the k-1 box 20AB - no 20AB, no ordinary income column then then sales price is zero. The numbers I’m using represent the line numbers in forms mode (desktop only)
- Sales Price = line 20AB (1065 k1)
- Selling expenses = 0
- Basis = 0 (zero – nothing else)
- Gain is computed and should be same as the sales price.
- Ordinary gain = enter the same amount as the sales price"
just want to make sure i understand
I am reporting the sale in my 1099-B and turbo tax will take care of it there
what that doesnt take into account is my section 751 gain from the sale. so that i must address in the K1 part.
so i report in K1 as the sale price is my 751 gain of 12576 ( which from googling is recapturing as ordinary gain)
partnership basis is 0 because i address that in 1099 B/Schedule D
my ordinary gain is same as my sale price (12576) because that lets them know the 12576 should be ordinary gain and not capital gain?
On the directions it says to enter it so that it appears as a negative adjustment - do i ignore this, does turbo tax already do it for me? or do i enter as a negative number?
what do i do with column 8 where it says amt gain/loss adjustment of -2271 (nothing?)
for these ordinary gains im realizing, arent my loses/debt i have been carrying over supposed to help offset the gain?
