ablantonaz
Level 1
On the K1, the loss will become part of the real estate income/loss in box 2. It does not show in box 10, section 1231 gain/loss. We are being told this is wrong.
0 Cheers
abctax55
Level 15

"...We are being told this is wrong."

Being told by ???? that it is wrong?

HumanKind... Be Both
qbteachmt
Level 15

"It does not show in box 10, section 1231 gain/loss. We are being told this is wrong."

Did you do your own research?

Such as this article:

https://www.investopedia.com/terms/s/section-1231.asp

 

*******************************
Don't yell at us; we're volunteers
ablantonaz
Level 1

We are being told it is wrong by a CPA 

0 Cheers
ablantonaz
Level 1

Yes. I've seen this article.  Thank you. 😊

0 Cheers
qbteachmt
Level 15

"Yes. I've seen this article."

Then the question remains: Do You think it is wrong? You're the professional tax preparer.

Did you read what the IRS tells you:

https://www.irs.gov/publications/p544#en_US_2020_publink100072478

 

*******************************
Don't yell at us; we're volunteers
0 Cheers
abctax55
Level 15

"...You're the professional tax preparer."

Maybe, maybe not... I'm not convinced.

HumanKind... Be Both
0 Cheers