Discussion:Easy Question for a Pro... 1250 Gain Related Party Sale

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Discussion Forum Index --> General Chat --> Easy Question for a Pro... 1250 Gain Related Party Sale

Incognita (talk|edits) said:

April 26, 2008

I have a quick question that I didn't feel was appropriate to post in Tax Questions (due to my student status), but isn't really appropriate for the "I've got a personal tax question" boards at Intuit.

I'm completing a theoretical Partnership 1065 and assorted other forms (due Monday) wherein I have a 70% partner who purchased a building and land from the partnership.

The land was sold at a loss resulting in a wash sale.

The Sec. 1250 building has no recapture, and was sold at a minimal gain ($542). The sale is to be treated as capital gain to the partnership.

Do I report this in Part III of the 4797 or on the schedule D?

I've been trying to figure this out for the better part of a week - my prof is on post-April 15 holiday until Monday, and our fill-in professor doesn't have a clue, add to that working classmates who respond by saying they don't know because the 'software sorts that out for me', and I'm just shy of being ready to tear my hair out.

THANKS so much for any help.