k-1 sale of capital asset - lived there 2 of 5 years

[misspat106]

where do I enter sale of capital gain exclusion because client lived there 2 of 5 years?

On 1040 or 1041 form?

[qbteachmt]

K-1?

You seem to be asking about the personal residence exclusion. That's not a K-1 issue.

[misspat106]

RAPID REPLY - K-1 SHOWS NET SALE PROFIT - HOW DO I SHOW ON 1040?

FULL AMOUNT? OR K-1 AMOUNT?

[qbteachmt]

Rapid Reply? What's that?

This is a topic you started on the internet; it's a Discussion forum.

A 1040 is a personal tax return, which doesn't have a K-1.

A 1041, for an estate, would have beneficiaries. If the Estate sold the property, that is different than the Owner who lived there, selling it.

Really, more details would be helpful. Thanks.

[misspat106]

CLIENT HAD TRUST ONLY WITH CONDO.  SOLD = PROFIT $29,983.00 BUT LIVED THERE SEVERAL YEARS.    ( 2O OF LAST 5.  SO TRUST TRANSFERS GAIN TO HER 1040.

SO ON 1040, IT SHOWS NET PROFIT BECAUSE OF NET GAIN FROM K-1.

IT CARRIES TO SCH D - BUT I DON;T SEE WHERE TO TAKE THE EXCLUSION.

[misspat106]

WOOPS - 2 OF 5 YEARS

[misspat106]

Rapid reply was only a positive comment on your response to my question!  A compliment!

[sjrcpa · Accepted solution]

If there is any exclusion to be had it would be at the trust level - depending on the type of trust and your client's rights with respect to the property. Since you have a trust K-1 with a taxable gain, it looks like your client pays tax on it.