Below are solutions to entering capital gain (loss) and ordinary gain (loss) from a passthrough partnership K-1 or a passthrough S corporation K-1 in the Individual module.
The capital gain (loss) flows to Schedule D, part II, line 12. The ordinary gain (loss) flows to Form 4797, part I, line 2. Details of the related disposition(s) don't flow to Form 4797.
Follow these steps to enter a capital gain (loss) and ordinary gain (loss) from a passthrough partnership K-1:
- Go to Input Return ⮕ Income ⮕ Passthrough K-1's.
- Under Passthrough K-1's select Partnership Information.
- Select the Lines 1-10 tab.
- Scroll down to Part III - (Lines 1-10)- Partner's Share of Current Year Income (Loss) section.
- Enter the capital gain (loss) in (9a) Net long-term capital gain (loss) or (9a) Passive long-term capital gain (loss).
- Enter the ordinary gain (loss) in (10) Net section 1231 gain (loss) or (10) Passive net section 1231 gain (loss).
Follow these steps to enter a capital gain (loss) and ordinary gain (loss) from a passthrough S corporation K-1:
- Go to Input Return ⮕ Income ⮕ Passthrough K-1's.
- Under Passthrough K-1's select S Corporation Information.
- Select the Lines 1-9 tab.
- Scroll down to Part III - (Lines 1-9)- Shareholder's Share of Current Year Income (Loss) section.
- Enter the capital gain (loss) in (8a) Net long-term capital gain (loss) or (8a) Passive net long-term capital gain (loss).
- Enter the ordinary gain (loss) in (9) Net section 1231 gain (loss) or (9) Passive net section 1231 gain (loss).
