OOPPS, I forgot to check the "final K-1" box on a 08 K-1. In addition, I included the gain on the partnership sold in 08 on 08 Sch D (via mail in form 8453 w/detailed stock sale document) like any other stock sale.
I went into K-1 additional info and checked box 1 and 1a, entered both bot and sold dates plus cost basis and sale price. The gain appears on Sch D but reduced the amt on Ln 17, form 1040 by the exact amt of the gain. In addition the gain from this partnership seems to be included in my client Sch D overall calculations even after backing out the gain I entered on the original tax return Sch D. Sounds like "double dipping".
What is this gain considered? It cannot be considered return or investment....??
My client is only allowed the $3K capital loss so it looks like to me this will lower his income taxes.
I went into K-1 additional info and checked box 1 and 1a, entered both bot and sold dates plus cost basis and sale price. The gain appears on Sch D but reduced the amt on Ln 17, form 1040 by the exact amt of the gain. In addition the gain from this partnership seems to be included in my client Sch D overall calculations even after backing out the gain I entered on the original tax return Sch D. Sounds like "double dipping".
What is this gain considered? It cannot be considered return or investment....??
My client is only allowed the $3K capital loss so it looks like to me this will lower his income taxes.