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bugger23 · Apr 14, 2009, 11:53 AM

My inherited a limited partnership from her father in 2007. It dissolved in 2008. The K-1 shows a 1250 gain and a 1231 gain. What it doesn't indicate is that it was inherited. If entered into Turbo Tax the way it is presented, it increases the taxes considerably. Is there a way to enter it a different way to indicate what it was worth when inherited and when it was sold?

AtlantaTaxExpert · Apr 16, 2009, 02:45 PM

You need to get professional tax help, as your question is simply too complex for this type of forum.

MukatA · Apr 16, 2009, 05:53 PM

You inherited partnership in 2007. You do not pay any tax on inheritance. Any income after inheritance is your income.
Also for any capital gain, your cost basis is the FMV at the date of inheritance.
Read: Your U.S. Tax Return: Tax on Inheritances

For unrecaptured Section 1250 Gain and when a section 1231 gain or loss from disposal of business property, you need to consult a professional. You 1231 gain is long term capital gain after you deduct your cost basis.