Support CenterSchedule K1 (1065)
According to IRS Publication 544 - Sales and Other Dispositions of Assets, Chapter 3 -Section 1250 Property:
Assets depreciated as code section 1250 property usethe straight-line depreciation method. Resulting gain is not immediately recaptured at ordinary rates like gains on 1245 property (there is no tax item called section 1250 recapture). Instead, any gain from the disposition of 1250 property results in a tax item called unrecaptured 1250 gain (calculated on Form 4797 Part III). This is a flow-through item reported separately on the shareholder's K1. If net 1231 gain is reported on the individual's Schedule D, the gain will be taxed at a 25% rate to the extent that there is unrecaptured 1250 gain.
According to IRS Partner's Instructions for Schedule K-1 (1065), line 9c - Unrecaptured Section 1250 Gain:
There are three types of unrecaptured section 1250 gain. Report your share of this unrecaptured gain on the Unrecaptured Section 1250 Gain Worksheet - Line 19 in the Instructions for Schedule D (Form 1040) as follows.
Report unrecaptured section 1250 gain from the sale or exchange of the partnership's business assets on line 5.
Report unrecaptured section 1250 gain from the sale or exchange of an interest in a partnership on line 10.
Report unrecaptured section 1250 gain from an estate, trust, regulated investment company (RIC), or real estate investment trust (REIT) on line 11.
If the partnership reports only unrecaptured section 1250 gain from the sale or exchange of its business assets, it will enter a dollar amount in box 9c. If it reports the other two types of unrecaptured gain, it will provide an attached statement that shows the amount for each type of unrecaptured section 1250 gain.
Additional Information
Para obtener la versin en espaol de este artculo de Knowledge Base, haga clic aqu:El Schedule K1 (1065), Parte III, lnea 9c calcula incorrectamente la ganancia no recuperada de la seccin 1250 en una declaracin de impuestos 1065 en SureFire.
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