How do I report Section 1250 Related Party Capital Gains?

April 26, 2008 10:22 AM

Accountant Filter: I'm a taxation student, working on a theoretical 1065 Return of Partnership Income (real tax return, theoretical situation). I've got a gain on the sale of a building that is a related-party transaction...

A 70% partner buys a section 1250 building from the partnership at a very small gain. There are no recaptured gains involved, but because it's a related party, this particular situation involves capital gain treatment of the gain.

Do I report the sale on the 4797 or is it reported on the schedule D instead?

Also, are there any suggested resources that would provide me more information? I've read everything I can get my hands on, but as a lowly student, there isn't much available to me at this point!

Thank you!

posted by Incognita to Work & Money (1 answer total)

I live with an accountant and he uses the forum for his Intuit software to ask questions like this. (and partnership questions like this vex him the most so you are not alone.) I found a forum here but I am not sure if there is a consumer forum and a separate professional forum. (my accountant is out fishing). But that should be a good place to start.
posted by cda at 11:39 AM on April 26, 2008