Unrecaptured Sec. 1250 gain

[Gretel]

I am blue in my face from reading, but can not find the answer to the specific question I have.

On a K-1 I have Sec.1250 gain reported and Sec.1231 for rental property sold. It appears that the amount shown as Sec.1231 includes the 1250 gain. Is this correct?

This would mean the amount shown as 1250 gain is used only to compute the correct tax rate?

Thanks.

[Matt Sova]

That's right

Line 9c shows the portion of the gain that is 1250 and line 10 shows the entire gain. Line 9c is only used to calculate the correct tax portion.

If line 9c is 8,800 and line 10 is 58,800 then the property was sold for 50,000 more than original cost and 8,800 is depr recapture.

[Gretel]

Thanks a million, Matt. Just not experienced with rental property sales.