LorianneH Posted March 12, 2013 Report Share Posted March 12, 2013 Hi, I am having quite a bit of difficult using the ATX Input Sheet for Form 4797. I have entered the "Gross Sales Price" of the asset sold and the "Cost or other basis" which then calculates a gain. All of this is fine, however, once I select "1250" under "Type of Property" it produces an additional section in which to enter information. I then enter the total amount of accumulated depreciation on the "Additional depreciation after 1975" line. The issue comes with the K1. When I do it as described above, the K1 generates Ordinary business income, Unrecaptured section 1250 gain AND Net section 1231 gain. This completely overstates the amount of the gain allocated to each partner. Can someone please help assist me in where I am going wrong with this? Thank you! Quote Link to comment Share on other sites More sharing options...
OldJack Posted March 13, 2013 Report Share Posted March 13, 2013 No "Unrecaptured section 1250 gain" means when this is put on the 1040-4797 (line 8) if there are ordinary losses from prior 5 years, the sec 1231 gain will be recaptured as ordinary income rather than pass from the 4797 to Sch-D. It is not additional gain but a classification of the 1231 gain being subject to ordinary income. Quote Link to comment Share on other sites More sharing options...
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