Reporting long-term passive income on Schedule D

Forum|Forum|2 months ago
April 5, 2026
2 replies
0 views

Client sold his share of an LLC. Long-term passive gain is recognized.

I entered the transaction directly using the Capital gain/loss worksheet, but I can't come up with the code for the transaction to be recognized as a passive long-term gain.

Any thoughts? Thanks in advance for any help!

ProSeries Tax

Best answer by TaxGuyBill

@jhbvtacpa wrote:

I entered the transaction directly using the Capital gain/loss worksheet,

Don't enter it there.

On the K-1 worksheet, above line 1 there is a "Quickzoom" button about dispositions. Click that and enter the sales information there.

sjrcpa

Level 15

What software are you using?

Usually there is a way to link it to a K-1 activity.

The more I know the more I don’t know.

J

jhbvtacpaAuthor

Level 5

Pro Series Basic

Gain is shown as a note in Box 20 (the amount is correct as it's the net of the selling price and the reduction of the shareholder's capital account)

Thanks for your help!

T

TaxGuyBillAnswer

Level 15

@jhbvtacpa wrote:

I entered the transaction directly using the Capital gain/loss worksheet,

Don't enter it there.

On the K-1 worksheet, above line 1 there is a "Quickzoom" button about dispositions. Click that and enter the sales information there.

J

jhbvtacpaAuthor

Level 5

That's the help I needed to crack the code!! The worksheets are great once you find them,

Thanks again

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