My K-1 reports the following:
$784 post 5/6/03 1231 gain
$3,252 total 1231 gain
$782 portion of post 5/6/03 1231 gain that is 1250 unrecaptured
$1,865 portion of total 1231 gain that is 1250 unrecaptured
It is clear enough how the $1865 flows to line 19 on
Schedule D. It is also clear that the $784 and $782 are
probably subsets of the $3,252 and $1,865.
I think I also understand the following. Were it not for the
$782 portion of the $784, the latter would be given
preferential tax treatment as post 5/6/03 gain. Because all
but $2 of it is 1250 unrecaptured gain, most of it is
subject to taxation at a higher rate no greater than my
marginal tax rate (15%.)
So, I think I have all of the above numbers in the right
places on Schedule D and its worksheets except for the $782.
Where does it go?
Thanks,
John
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