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Jon Andrews
Jon Andrews, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 3118
Experience:  I deal with all levels of tax planning and controversy - from the ordinary to the complex.
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My mother has a large capital gain reported on a k1. This

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My mother has a large capital gain reported on a k1. This is for a plantation that she owned 16.67% of. The other share's belonged to other relatives. My grandfather set it up that she would pay him a 33,000.00 per year & that would be the cost basis. Can I deduct the cost basis from the total reported on the K1 and use that as her total capital gain? The original amount on the K1 does not reflect the cost basis.
Submitted: 7 years ago.
Category: Tax
Expert:  Jon Andrews replied 7 years ago.

Certain items are required to be determined at the partnership level. The gain from a sale is one of those items. The K-1 amount should be net of basis. If it was not reported that way, it should be corrected. Failing that, there is a method for reporting a partnership item differently than it is reported on the K-1. This would involve completing and filing Form 8082. You can download the form at this link.

 

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