Hi, I have a sale of Energy Transfer LP shares I am reporting using the K1. Sale also appears on Etrade 1099-B. Do I report the sale in both the K1 and 1099-B?

[JamesG1]

Only report the sale once.  The sale can be reported through the K-1 screens or through the 1099-B entries.

Be aware that if:

• At the screen Describe the Partnership, you report Disposed of a portion of my interest.... and
• At the screen Tell Us About Your Sale you reported Sold Partnership Interest,

the sale is being reported.  You would not report the sale on IRS Form 1099-B Proceeds.

Within the K-1 entries,

• at the screen Describe the Partnership, select This partnership ended in 2021, and 
• at the screen Describe Partnership Disposal, select No entry.

In this case, you would report the sale on IRS Form 1099-B Proceeds.

Make sure that the sale is not reported twice.  Review the sale of the investment reported on IRS Form 8949 Sales and Other Dispositions of Capital Assets and IRS Form 1040 Schedule D Capital Gains and Losses.

You are able to view the entries at Tax Tools / Print Center / Print, save or preview this year's return.

[nexchap]

@dmhessfl2 There are problems that come up trying to enter an MLP sale into TT.  Entering it into the K-1 only works in certain circumstances.  Its best to use the K-1 interview ONLY for the "Gain Subject to Recapture as Ordinary Income" and the 1099-B interview to enter the Cap Gain/Loss (you have to adjust your cost basis to do that correctly).  Here's a thread that explains it, and has numerous examples of the calculations:  https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale...

[Mike9241]

MLP reporting k-1 and 8949

Please follow these instructions. Incorrect entries can result in entering the sale twice or otherwise incorrectly. Also, see the sales schedule that was included with the k-1

Enter the k-1 info
Check the PTP box

If total disposition proceed as follows:

Check final K-1 (s/b marked on actual k-1)

Check sold or otherwise disposed of entire interest

Use QuickZoom to get to the following section 

On the k-1 disposition section for sales price use the ordinary income (sometimes you’ll see a column with the “751” or the words ”gain subject to recapture as ordinary income”
Cost is zero
Ordinary income is the sales price.
This info flows to form 4797 line 10 and is taxed as ordinary income.

Now for the 8949.
The broker’s form is probably coded as B or E – sales proceeds but not cost basis reported to the IRS. This is because the broker does not track the tax basis. It used what you paid originally which is not the correct.

The correct tax basis is:
What you paid originally, should be the same as what is on 8949,
Then there is a column on the sales schedule that says cumulative adjustment to basis. If it’s positive add it to the original cost. If it’s negative subtract the amount
Finally add the amount of ordinary income reported above.
The result is your corrected cost basis for form 8949.

Some other things. Look at lines 20Z1. That number should be added to the ordinary income above for reporting the 199A (qualified business income from the PTP). You don’t have to enter this but the you lose out on a tax deduction = 20% of this amount.