How do I allocate the gain from the sale of a partnership interest between short-term gain and long-term gain? A portion of my investment has a holding period of 6 months and the balance has a holding period of two years. I entered the proceeds and basis on the K-1 worksheet, and it flowed to form 8949, but it all shows up as short-term gain. How can i allocate the long-term portion?
I guessing that this is a publicly traded partnership (PTP) bought and sold thru a brokerage.
if so, you have to be careful if your importing data from brokerage 1099-B because the sale will already be there (the basis reported will be wrong)
make sure on k-1 that you check final and partner sold interest in 2018. use quickzoom to get to TT disposition worksheet. go to part II and enter info use 0 for selling price and 0 for basis. then you can go to 1099-B worksheet and enter sales and basis - 2 entries needed 1- short term 1 long -term. delete the brokers info
or you can just change the basis the broker is reporting
basically the same approach even if not a PTP
be careful if a because often part of the gain is ordinary. A PTP will provide a sales schedule for this. a non-ptp should/will report as supplemental info any ordinary gain.
Are you saying that owned a portion of the Partnership (for two years), then you purchased a greater ownership interest (6 months ago)?
It's more complicated than that. I contributed stock and cash to a partnership that was liquidated several months later. The portion of the partnership interest purchased with contributed stocks retained the characteristics of those stocks - the acquisition date and basis. So when I report the sale of my partnership interest, I have multiple acquisition dates, some of which create a short term gain and others a long term gain.
I guessing that this is a publicly traded partnership (PTP) bought and sold thru a brokerage.
if so, you have to be careful if your importing data from brokerage 1099-B because the sale will already be there (the basis reported will be wrong)
make sure on k-1 that you check final and partner sold interest in 2018. use quickzoom to get to TT disposition worksheet. go to part II and enter info use 0 for selling price and 0 for basis. then you can go to 1099-B worksheet and enter sales and basis - 2 entries needed 1- short term 1 long -term. delete the brokers info
or you can just change the basis the broker is reporting
basically the same approach even if not a PTP
be careful if a because often part of the gain is ordinary. A PTP will provide a sales schedule for this. a non-ptp should/will report as supplemental info any ordinary gain.