How would one describe a k1 partnership for a called preferred stock? Ended in 2020 or Disposed of a portion or both?

[Mike9241]

it is unclear what took place. please describe in more detail. in any case you should have received something that described the tax attributes of what took place.

for example, say the partnership - possibly publicly traded - merged with a publicly traded company. for your partnership interest you got preferred stock which you sold.

first, you need to get the K-1 and record its activity.  a supplement with the K-1 may describe some additional tax consequences of the merger.  then you need to determine the tax basis of the partnership. that may become the tax basis of the preferred stock you received so you know its cost basis. 

if publicly traded, the k-1 may be available through this website after registering.

https://www.taxpackagesupport.com/ 

 you can also search the web using the name of the partnership and /or the name of the company.

then once going to their website look for a link to something like investor relations. 

[ramirault8]

First time dealing with MLPs. Turbotax software is very lacking in the selling of theses units, Taxact is even more confusing. I had TRGP-PRA which called their preferred shares so they can completely move to 1099s thankfully. The only numbers I got to work with are contributions, withdrawals, and box 19. No sales schedule. Turbotax is mute on the subject and google only tells you what an MLP is no one seems to have an answer on how to do this correctly and not doubled entered/taxed. My broker reports this call on the1099-B as well. The only help I seem to have found was @nexchap thread on entering sales.

[nexchap · Accepted solution]

You'll want to make sure your actual gain/loss is correctly reported on the 1099-B provided by the broker.

For the K-1, you'd want to check off both.  Partnership ending signals to TT that you won't be getting any future K-1s (so it won't prompt you next year) and releases any suspended losses (which I'm guessing in your case are $0). "Sold Portion...." will trigger the Sales Schedule, which you probably won't need since you're just going to enter 0 for sales and 0 for basis (since you're reporting the gain on the 1099-B) but its technically true and definitely works so checking the box can't hurt.

[ramirault8]

Thanks. Every software seems to do it some different arcane way which they don't explain. Might just be easier to do it by hand 😛