K1 box 10 entry

Forum|Forum|3 years ago
April 15, 2023
1 reply
0 views

My K1 says in box 10 says "Net section 1231 gain (loss)" and has a positive number.

TurboTax says "Box 10 - Net Section 1231 Gain"

Do I enter the positive the amount from K1 as a negative or positive number?

PatriciaV

Employee

Yes, enter the number in box 10 as it appears on your K-1. A gain is typically reported as a positive number. The box description often covers both options, gain and loss.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

ATX Tax GuyAuthor

I have a W-2 from my full-time job and a number of K-1s from various investments. What surprised me is that this was a large positive number in box 10 and when I entered it my tax liability was significantly reduced. I don’t understand how a cap gain can reduce my tax for income.