Randall Posted April 8, 2022 Report Posted April 8, 2022 Form 1065 with rental property. One property was sold. 1231 gain but some was recapture. The ATX K-1 statement input sheet has a line for Sect 1231 loss but not 1231 gain. There is a line for ordinary gain. Is the 1231 gain considered investment income and not business income for QBI purposes? Would the recapture portion be considered ordinary gain and considered business income for QBI purposes? Quote
Lee B Posted April 8, 2022 Report Posted April 8, 2022 "1231 gain is characterized as long-term capital gain and is excluded from QBI; Net Sec. 1231 loss is characterized as ordinary loss and is included in QBI; and. The character then tracks back to the trade or business that disposed of the assets (T.D. 9847).Dec 1, 2020" 1 Quote
Randall Posted April 9, 2022 Author Report Posted April 9, 2022 13 hours ago, cbslee said: "1231 gain is characterized as long-term capital gain and is excluded from QBI; Net Sec. 1231 loss is characterized as ordinary loss and is included in QBI; and. The character then tracks back to the trade or business that disposed of the assets (T.D. 9847).Dec 1, 2020" Thanks. Quote
Randall Posted April 10, 2022 Author Report Posted April 10, 2022 How did you find that? I think it is 50 pages long. I eventually found the reference to 1231. Thanks. Quote
Lee B Posted April 10, 2022 Report Posted April 10, 2022 Simple online search in about 1 minute 2 Quote
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