Question

K-1 for capital gains for out of state trust

Forum|Forum|3 years ago
March 9, 2023
1 reply
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I received a K-1 for capital gains from the sale of a home in Tennessee from the trust of a deceased family member. When I enter my information for Idaho state (my residence) in TurboTax, the form asks for the address of the Idaho business that was sold. Did I enter something wrong on the Federal form that would cause TurboTax to think this was a sale of a business on the Idaho form? The K-1 form shows an amount in box 4a, the letter code H and the same amount in box 14, and the amount is included on Schedule D and in Form 1040 line 7. Box E is checked on the K-1, but I tested it with Box E as not checked and the Idaho form still thinks this is the same of a business in Idaho rather than the sale of a family home from out of state. Please advise. Thanks!

E

ErnieS0

Yes, go back and answer NO on the screen "Capital Gains Deduction from Partnerships, S-Corps, Estates and Trusts," because a property sale in Tennessee is not Idaho qualified capital gains.

Gains from the sale of the following don’t qualify for the deduction:

Real or tangible personal property not located in Idaho
Tangible personal property not used by a revenue-producing enterprise
Intangible property. Some examples of intangible property include, but are not limited to:
- Stocks and bonds;
- Interests in a partnership, LLC, or S corporation.

Learn more at Capital Gains.

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G

gmcgeochAuthor

I answered NO and the amount I owe on Idaho state tax is reduced proportionately. However, the following screen still appears next:

Location of Business Property

It looks like we have a value for sales of business property. Idaho requires the address for such property be recorded, please enter in the space provided below.

Idaho Location of Business Property ___________________________

I can enter the Tennessee location of personal property to get by the screen, but it seems like I shouldn't even be asked the question if I answered NO.