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

[Calneva]

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 ?

Thanks.

[George4Tacks · Accepted solution]

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. 

[Calneva]

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.

Thanks