1065 K-1 Line 9c

[JG EA]

On the client's Section N (Partner's Capital Account Analsis) the box is checked for Tax Basis.

In figuring the capital account for current year increase or decrease they left out Box 9c (Unrecaptured Section 1250 gain). Is this correct?

[abby]

yes

This amount is already included in the section 1231 gain line 10 - it's the amount subject to calculation using the 1250 unrecaputured gain tax rate.

[JG EA]

Of course it is, I'm really not thinking!!!

Thank you,

[Davc]

Also keep in mind that having the tax basis box checked frequently leads to unwarranted assumptions on the part of the preparer of the personal return. Even when it's correct, it's still inside basis.