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Author
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Topic: partial sale with built in gain
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lk
Member
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posted 11-07-2006 10:48 AM
  
I have stock contributed to a Partnership with a book value and a different tax basis. When the stock is sold I must allocate the built in gain to the contributing partner and any excess gain to all partners, so I am spreading the gain among 2 "Capital Gain" accounts. All is fine when 100% of stock is sold, but if it is a partial sale my Sch D doesn't use the tax basis...it combines the tax basis with my 2nd "Cap Gain" account. Am I doing somethig wrong?
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fni_support
Moderator
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posted 11-09-2006 08:19 PM
Hello Lynne,You are not doing anything wrong. I was able to re-produce the problem. Thanks for pointing this out. We will look into a solution and notify you as soon as it is available.
George
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Financial Navigator, Inc.
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fni_support
Moderator
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posted 11-17-2006 06:03 PM
Hello Lynne,If two capital gains accounts are needed then here is a solution:
Let the system calculate and enter the total capital gains amount on the 2nd line. On the 4th line (after the unrealized gain) enter the other capital gains as a credit.
On the 5th line enter the adjustment to the capital gains account in line 2 with the same amount as line 4 but with opposite sign (like a general journal adjustment).This will ensure the transaction balances and lets the system do the calculation for capital gains and unrealized gains. Only need to enter the last 2 lines for adjusting the capital gain.
George
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Financial Navigator, Inc.
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