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Question

K-1: Received distribution for my interest in rental properties which was transferred to remaining partners. Do I report a cap gain from the distribution? If so, how?

Forum|Forum|3 years ago
April 8, 2023
1 reply
0 views

The LLC remains in existence, but I am no longer a partner. My K-1 showed on part III item 19 my distribution amount from the transfer of houses but no capital gain for the transfer. The distribution was greater than what I paid for the houses.

TurboTax Online

There are a couple areas you need to address when reporting the disposition of your interest. You have to start wit the 751 property sale , which looks to the underlying assets as a sale your proportional share- this is reported as ordinary income .

After you report thus income, you will enter the remaining disposition of your LLC interest as a Investment sale. You will need your adjusted basis information to determine your income.