1065 K-1 and 1231 gain

[tammie]

Client has a partnership K-1 with 330,000 in 1231 gain.  I entered all the data from the final K-1 , then the program directs me to complete page 2 of the K-1 which includes date sold, date acquired, sales price, selling expenses, basis, and calculates the gain as 330,000.  but the program is also adding the 330,000 gain to the total and taxable income.  What am I missing  that I should be entering or checking off to prevent the double income?  Thanks for any help.  Hope all are staying well.

[The_AntiTax_Man]

@tammie  If you marked the 1065 K-1 as a "Final" K-1, then PS requires you to fill out the Part II Disposition of Partnership Interest info.  If all of the gain is already reported on the 1065 K-1, box 9a and there is no additional gain to report from the disposition you report zero. 

[tammie]

When I enter the sales price, expense, and basis, PS automatically calculates the gain/loss.  I can enter zero in the ordinary gain/loss, but it doesn't change anything.  Do I NOT enter any data in sales price, expenses and basis at all?

[The_AntiTax_Man · Accepted solution]

You will need to contact the preparer of the Form 1065 for guidance on the Disposition of Partnership Interest info.