TP gifted Partnership (P'ship) interest so TP received for the first time a K-1 which is also a "final" K-1. ProSeries tax software has a box to check "gifted" but then says Sch D needs be completed. The person who gifted (donor) the P'ship interest to the TP is deceased and that is when the gift transaction took place. Am I to assume the TP needs to obtain the value of the P'ship interest the day of the donors death which would be the cost basis and then sale price of the P'ship interest would be the sold for Sch D purposes? The P'ship is still operating. Its a pretty well known P'ship especially for those of us who have Series 7 securities licenses.
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It's not a gift. It is an inheritance. Basis is FMV at date of death. Then, the TP who inherited it apparently sold it? So Sche D. Check to make sure who's SSN is on the K-1. The deceased should have had a "final" which ended at DOD. -
Burke, thanks for pointing that out.....not TP SS on K-1
In the "info about the partner" box E, it has some one other TP's SS but in partners name box F, it list TP name & 2 other people. TTEES.
So does the TP need to worry about this for this belongs with the deceases final tax return?Comment
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Sounds like it to me. I have seen this before. It belongs on the decedent's final 1040. But if the TP's inherited it, they should also have one for a short year with their SSN on it. Unless they immediately sold it. Then it would be a Sche D item for the TP.Comment
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