Question

Schedule K-1 (Form 1065) Entries

Forum|Forum|5 years ago
March 24, 2021
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I redeemed a portion of my shares in an LLC in 2020 but the box in Part II Section J is not checked. On the screen entitled Describe the Partnership, do I need to check the box got Disposed of a portion of my interest in partnership during 2020?

M-MTax

The box "Check if decrease is due to sale or exchange of partnership interest" will be checked if you sold or exchanged all or part of your partnership interest to a new or pre-existing partner during this tax year, regardless of whether you recognized gain or loss on the transaction(s). You may have realized a gain or loss on the transfer or disposition of your interest. See codes AB, AC, and AD on line 20 for items that have special gain or loss treatment.