K-1 from previous year

[kristikls]

I received a K-1 from 2015 that I didn't submit last year.  I'll also be receiving one for 2016.  Can I submit them both with my 2016 taxes?

[ThomasM · Accepted solution]

No, IRS only allows the income for a particular year to be included on that year's return.  In order to add the 2015 K-1, you'll need to amend the 2015 return by filing a 1040X.  You can do this in TurboTax.

IRS accepts the 1040X (amended return) on paper only, so after preparing it you'll print, sign, and mail it.

Here's the link to the TurboTax support page for amending returns, which will get you started: https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Return/Amending-Your-Income-Tax-Return/INF120... 

[Markith]

I have the same issue - yet my K-1 is all 0's.  So I amended and entered it, yet my 1040x did not change, what should I do?  Thanks

[ThomasM]

If the K-1 is all zeros and has no impact on your original return, then you don't need to amend.  Just keep it for your records.

[Markith]

Thanks for your quick response!  Now my 1099 was amended too, and my capital loss increased...again my 1040x didn't change, how do I account for my capital loss carryover increase next year?  Thanks again

[ThomasM]

What was it on the 1099-B that changed, resulting in an increase in the cap loss carryover?

[Markith]

I received a K-1, and my amended 1099-B removed the relevant "Covered short-term gains or losses"  for the K-1 partnership and added the partnership to the "Unknown Term Gains or Losses" section.  This lowered my "proceeds" on my 1099 an increased my loss amount.  Thanks again

[ThomasM]

Aren't those "unknown term" proceeds still appearing on your 1099-B?  It sounds like the brokerage wasn't sure whether they were short term or long term, so they removed them from one section of your 1099-B and simply put them in another section, but the proceeds are still yours to deal with.  Am I correct?

[Markith]

Yes they are on my 1099-B. I guess investing in a publicly traded limited partnership is confusing.  Basically I received my K-1 in the mail, and then got an amended 1099-B from my broker.  The LP company on my original 1099, now moved into the "Unknown Term Gains or Losses" section."    What's weird is, under the "Unknown Term Gains or Losses" section  there is only an amount in the "Proceeds reported to the IRS" column, no cost basis or profit/loss columns completed though.  Not really sure what to do or if I should amend....thanks for your help

[ThomasM]

You’ve already filed and accounted for the sale as short term.  Now you've received a new 1099-B with the sale category changed from short term to “unknown.”

If the total proceeds amount has remained unchanged – merely shifting the amount from one category to another -- and your holding period was indeed a year or less (short term), then there’s no need to amend because you reported a short term sale and it was a short term sale.

If your total proceeds have decreased – not just the original short-term section decreasing, but the total of all sections (including the “unknown”) – and the sale is indeed short term as you reported on your original return, then you don’t need to amend.  You can simply make the cap loss carryover adjustment in TurboTax next year when you file your 2017 return (Federal Taxes > Wages & Income > Investment Income > Capital Loss Carryover).

An amendment would be necessary if your total proceeds actually increased, but it doesn’t sound like that’s the case here.

[Markith]

Great, thanks so much for your fast responses and information, very helpful!