Hi All,

My client has MANY K-1s; they buy and sell parts of real estate partnerships.

I just came upon a note in one that says INCLUDED IN YOUR PROPERTY DISTRIBUTION IS CALIFORNIA SOURCED DEFERRED GAIN FROM THE 2016 1031 EXCHANGE OF XXX APARTMENTS: $90,xxx.

I can't figure out how to report this deferred gain that now needs to be recognized. (In 2021, the current building was sold and the partnership was closed.)

How do I report this?

Thank you!