When all else fails READ THE INSTRUCTIONS! https://www.irs.gov/pub/irs-prior/i1065sk1--2018.pdf
Box 10. Net Section 1231 Gain
(Loss)
The amount in box 10 is generally passive if
it is from a:
- Trade or business activity in which you
didn't materially participate.
However, an amount from a rental real
estate activity isn't from a passive activity if
you were a real estate professional (defined
earlier) and you materially participated in the
activity.
If the amount is either (a) a loss that isn't
from a passive activity or (b) a gain, report it
on line 2, column (g), of Form 4797, Sales of
Business Property. Do not complete columns
(b) through (f) on line 2 of Form 4797.
Instead, enter “From Schedule K-1 (Form
1065)” across these columns.
If the amount is a loss from a passive
activity, see Passive Loss Limitations in the
Instructions for Form 4797. Report the loss
following the Instructions for Form 8582 to
figure how much of the loss is allowed on
Form 4797. However, if the box in item D is
checked, report the loss following the rules
for Publicly traded partnerships, earlier.
If the
partnership had net section 1231 gain (loss)
from more than one activity, it will attach a
statement that will identify the section 1231
gain (loss) from each activity.
If you have any foreign source net
section 1231 gain (loss), see the
instructions for box 16, later.
net
section 1231 gain (loss), see the
instructions for box 16, later
Answers are easy. Questions are hard!
