Reporting Final LLC Partnership Sale on Schedule D
Every year I get lost in the woods when it comes to dealing with my K-1s. This year I have a final K-1 from a real estate LLC (my activity all passive) that I know I need to enter a final disposition sale on Schedule D in addition to entering the K-1 information. What I am unsure of is how to report the sale and from what basis. I assume I would calculate the basis as usual. But since this is a final K-1, I would not include the qualified nonrecouse and recourse financing since the liability is not present at the closure of the partnership. The following is what I believe to be the correct calculation.
From my Final K-1 IRS Form 1065
Beginning Capital 225859
Line 1 -8136 Ordinary Business Income
Line 2 -20728 Net Rental Real Estate Income
Line 9c 36955 Unrecaptured Section 1250 Gain
Line 10 105221 Net Section 1231 Gain
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Final Basis 339171
Line 19A 317706 Distribution
There are no other deductions or gains listed.
So the final sale for Schedule D would be reported as 339171 (basis) – 317706 (final distribution = 21465 (loss).
Is this the correct way to report the sale?