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How to report the sale of investment real estate on form 1065

jtsccs
Level 1

The partnership sold investment real estate in 2021, held for many years. This non-rental real estate ( non-depreciable) was purchased in the partnership to hold for long-term appreciation. I believe the LT gain would eventually end up on the partnership k-1 on line 9a, net long-term capital gain from the data entered on the 1065 schedule D. But I believe the instructions for 9a gains or losses state that this line is only for portfolio income like stock sales. So, would this real estate sale be considered portfolio income?   

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2 Comments 2
sjrcpa
Level 15

Portfolio = Investment

The more I know, the more I don't know.
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jtsccs
Level 1

Thanks. So it is portfolio income.

We did receive a 1099-S. So would the sales be reported on form 8949?

The form asks if the 1099-b  showed a basis or not.  The 1099-s does not (of source).

Do I answer the question for the 1099-s and if it was the same as a 1099-b? That would mean that it is treated just like a stock sale via a 1099b.  Correct?

 

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