Quote Originally Posted by touhy View Post
Ok, setting aside "Please seek tax advise from a professional" for a moment, could someone give me a quick and dirty explanation of the K-1 numbers? The Capital Gains look really high (but not in a good way )

Here's the just of it for our personal 2019 tax year:

We received 108K from Eastham III in distributions

Of that, 56K is designated "return of capital"

Our K-1 indicates a Capital Gain("line # 10, "net section Capital Gain") of 93K

Plugging the number into TurboTax, we we get approx 90K of Taxable Income

That's not nice. Is this basically right?

Seems like quite a tax liability. Are we not able to net the "return of Capital" against the gain?


Mostly I agree with jk. I would reach out to Eastham directly for help in reconciling your calculation, which would suggest $52k in capital gain ($108k minus $56k), with the K-1, which indicates a $93k capital gain. I'm guessing that the K-1 is correct and jk's interpretation is correct, but it couldn't hurt to ask Eastham for an explanation.