GLJEANNE Posted April 29, 2021 Report Share Posted April 29, 2021 New situation for me. Client is a passive partner (less than 1%) in a venture capital firm that sold off a couple companies last year, in installment sales. K-1 Line 20 P shows only the name of the companies, date of sale, and "Your share of Deferred proceeds" and "Your share of Deferred gains." The amounts are big enough that I do want to defer them, but everything I've researched says I would need to file a 6252 for him (which seems a little crazy that every partner would have to do that), or maybe just report the endgame, Section 453a(c) interest of 3%. I feel like I need a lot more info, but I have a bad habit of overthinking these things and driving myself nuts. So is there actually a simple answer to this, like all I need to do is report the Gain times the interest rate on Sch B? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 29, 2021 Report Share Posted April 29, 2021 I would think that if any gain actually passed out, it would be in another box on the K1. I suspect those deferred amounts are just informational, so the partners know what's coming in future years. But I'm just guessing. Quote Link to comment Share on other sites More sharing options...
GLJEANNE Posted April 29, 2021 Author Report Share Posted April 29, 2021 According to everything I've found in a few hours of researching, they have to be reported. That's why I was hoping one of us on here would have experience with this type of situation. It can't be that unusual, just not one I've seen. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 30, 2021 Report Share Posted April 30, 2021 Well, it seems odd to call something 'deferred' and then not defer it, from a pure logic standpoint. Unless this was deferred from prior years and has to be reported now. 1 Quote Link to comment Share on other sites More sharing options...
GLJEANNE Posted May 2, 2021 Author Report Share Posted May 2, 2021 It's deferred, but the issue is that thew partners have to pay interest on the deferral. MY issue is I'm not sure if it's interest on the deferred proceeds, the deferred gain, or if I actually need to do a 6252 to come up with it all, in which case I need a lot more info. I was really hoping someone here would have dealt with this situation, but I guess it must be uncommon. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted May 2, 2021 Report Share Posted May 2, 2021 I've never heard of such a thing. I've had installment sales in S corps before and the realized gains and interest were simply passed out to the shareholders in the normal boxes on the K1 each year. Quote Link to comment Share on other sites More sharing options...
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