1065 K-1 Box 20, Code AD - Deemed Sect 1250 Recaptured Gain Question

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Form 1065 Box 20, Code AD -Deemed Section 1250 Unrecaptured Gain – Are amounts reported on this line already included as part of the amount reported on Line 9C – Unrecaptured Section 1250 Gain ? Or should the Box 20, Code AD amounts be considered separately reported amounts ?

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Lacerte Tax

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George4TacksAnswer

Level 15

Was this partnership interest sold this year? If so, then you need to incorporate the line 20AD into that sale in Screen 17 > Schedule D > Unrecaptured Section 1250 Gain > Sale or exchange of partnership interest.

Answers are easy. Questions are hard!

George4TacksAnswer

Level 15

Was this partnership interest sold this year? If so, then you need to incorporate the line 20AD into that sale in Screen 17 > Schedule D > Unrecaptured Section 1250 Gain > Sale or exchange of partnership interest.

Answers are easy. Questions are hard!

C

CalnevaAuthor

Level 3

Interest wasn't sold but the partnership distributed units of a new partnership formed from existing assets of the predecessor so appears it's considered a deemed distribution with recapture based on assets included in that distribution. In any case, would not appear to be included elsewhere in any reported K-1 information. So would need to be separately reported.

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