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

misspat106
Level 1

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

On 1040 or 1041 form?

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sjrcpa
Level 15

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.


ex-AllStar

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7 Replies 7
qbteachmt
Level 15

K-1?

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

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misspat106
Level 1

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

FULL AMOUNT? OR K-1 AMOUNT?

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qbteachmt
Level 15

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.

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misspat106
Level 1

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.

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misspat106
Level 1

WOOPS - 2 OF 5 YEARS

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misspat106
Level 1

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

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sjrcpa
Level 15

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.


ex-AllStar

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