Trying to input a Final K-1 for a partnership that was formed to give proceeds of a home sale to various members of the family after the death of a parent. This is the last K-1 for the partnership.
There are 5 checkboxes checked, domestic partner, limited partner or other LLC member, schedule K-3 is attached if checked, no to letter M for if the partner contributed property with a built in gain and Final K-1 at the top.
The only value on the entire form is in box 9a (net long term capital gain(loss)).
When you check K-3 is attached an error message pops up, I am assuming we leave this checkbox blank.
The Final K-1 checkbox is where I have a problem, or maybe a lack of understanding. I have selected "Final K-1", then selected "Partnership was discontinued during 2023" This generates page K1P. I selected Part II box 1a, "complete disposition in fully-taxable transaction" and then box 1 below "sold partnership interest". I inputted dates for the date of disposition and date it was acquired. The dropdown of how acquired I selected inherited. Box 5 sales price I have placed a 0 in it. If I put any value in here it adds it to the value already on line 9a of the K-1. I also placed a 0 in the basis box.
My question is, does this sound like it is done correctly? Do I need to report a sales price and a basis on the K1P? It seems correct to me but the tax on the amount of income shown seems low when checking the 1040.
I could remove the form and check the tax against the home sale worksheet(possibly). I may just be paranoid, or have been staring at this for far too long.
There is a K1 attached for a separate state (where the property was sold). I added the state return and allocated those amounts to the state.
Any help is appreciated, hopefully I have been doing this correctly. Thank you!
