Where do Capital Gain and Depreciation Recapture get entered on IRS Form 1065?

Question

A partnership I am a member of sold an apartment building
last year that we have owned and depreciated since 1979.
Using IRS Form 4797, I have computed: (1) the total gain, (2)
the amount of gain subject to depreciation recapture, and
(3) the amount of gain that is long term capital gain (Form
4797 lines 30 - 32). My question is on what lines of IRS Form
1065 Schedule K do these numbers get entered on?

Answer 1

It all depends on how things fall out on the 4797. If you accounted for the sale as a 1250 gain, any recapture would be all ordinary gain (end up in part 2 of the 4797) and would be reported on page one line 6. The amount that is capital gain would be reported on page 3 (sch. K) line 9a. The amount of 1250 gain that was not recaptured would also be placed on line 9c. This amount will affect the rate at which the capital gains are taxed when you calculate your final individual taxes on schedule D.

Answer 2

Irs Depreciation Recapture

Answer 3

Depending on whether the asset is used to produce income or as a capital asset, it could be Line 7 or 9. See the instruction for Form 1065 page16 http://www.irs.gov/pub/irs-pdf/i1065.pdf

Best wishes.

Answer 4

for the long term gain - stick it on Line 9a "Net Long Term Capital Gain"

For the depreciation recapture - stick it on Line 9c "Unrecaptured §1250 Gain"

This will correlate to the same lines on the partners K-1s.