Does anyone know how to enter Section 751 gain reported on Sch. K-1?

Forum|Forum|3 years ago
March 19, 2023
1 reply
47 views

I'm having trouble finding instructions on how to enter Section 751 gain that was reported on Partnership's Schedule K-1 line 20AB. All I can find is that "751 gain or loss is recharacterization of gain or loss from the sale of Partnership Interest from Capital Income to Ordinary Income. If this isn't accounted for elsewhere on the K-1 or in its attachments, you may need to enter the disposition information on the Dispositions screen." However, there are no instructions available (or that I can find) to input such information into the Dispositions screen.

This is related to royalty type income from Oil and Gas operation. If anyone knows how to get this entered, please let me know. Thank you!

Thank you in advance!

ProConnect Tax

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PhoebeRoberts

Intuit Community Champion

I have mine show up on Part II (bottom section of page 1) of the 4797. 751 gain as proceeds, put a -1 in the 4797 section that says something like "a -1 here forces it to go to the 4797" - it's the first or second field, override the term towards the top to be short-term (to make it ordinary).

Is this a publicly traded partnership? Be sure to use the worksheet to get all the pieces right.

V

Viktor YAuthor

Level 2

Thanks so much Phoebe! And yes, this is a publicly traded partnership - what should I look for on the worksheet to make sure all PTP items are entered correctly?

Thank you in advance!

PhoebeRoberts

Intuit Community Champion

The disposition worksheet on the K-1 walks you through calculating the ordinary and capital gain and the AMT adjustments. Just make sure you've followed it, and your tax return reflects the expected results.

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