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Subject Author Date
Partnership Distribution - Not on K-1 Barbara 10-08-2007
Posted by Barbara on October 8, 2007, 6:43 pm
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 If a limited partnership sells a property, shouldn't the
sale be reported on a 1065 and the gain/loss flow to the
partners on a K-1?

I have a situation where a Limited Partner received a $60k
check after partnership sold last commercial property.
However, when Final K-1 was finally received, the cash
distribution shows as $1200. I think I should report the
$60k as a distribution in excess of basis anyway.

Does anyone have any comments on this situation. Any
other suggestions on how to handle this? Thanks.

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Posted by Harlan Lunsford on October 9, 2007, 2:08 am
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 Barbara wrote:

> If a limited partnership sells a property, shouldn't the
> sale be reported on a 1065 and the gain/loss flow to the
> partners on a K-1?
>
> I have a situation where a Limited Partner received a $60k
> check after partnership sold last commercial property.
> However, when Final K-1 was finally received, the cash
> distribution shows as $1200. I think I should report the
> $60k as a distribution in excess of basis anyway.
>
> Does anyone have any comments on this situation. Any
> other suggestions on how to handle this? Thanks.

Naw; unless you have basis reconstructed from day one, you
can't assume this was "in excess of basis." If you can
start with original basis and have all the K1's since that
time, you'll get the true picture.

ChEAr$,
Harlan Lunsford, EA n LA

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Benjamin Yazersky CPA on October 11, 2007, 10:19 pm
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> If a limited partnership sells a property, shouldn't the
> sale be reported on a 1065 and the gain/loss flow to the
> partners on a K-1?
>
> I have a situation where a Limited Partner received a $60k
> check after partnership sold last commercial property.
> However, when Final K-1 was finally received, the cash
> distribution shows as $1200. I think I should report the
> $60k as a distribution in excess of basis anyway.
>
> Does anyone have any comments on this situation. Any
> other suggestions on how to handle this? Thanks.

have you accounted for the gain on the sale of the property?
that would add to your basis

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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