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eg75
Level 2

Where in Turbo Tax Premier do I get an MLP K-1 2018 SALES SCHEDULE column 7 RECAPUTRE posted to line 9 of the 1040 to take the appropriate business deduction?

Hi.  My question is about reporting an MLP "GAIN SUBJECT TO RECAPTURE AS ORDINARY INCOME" which is shown on column 7 of the "2018 SALES SCHEDULE" of the K-1 sent to me by Magellan Midstates Partners, LP.  The note for Column 7 says that I can also post it to line 9 of the 1040.  Where in Turbo Tax Desktop Premier do I get this posted to line 9 of the 1040 to take the Qualified business income deduction?

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9 Replies
TerryA
Intuit Alumni

Where in Turbo Tax Premier do I get an MLP K-1 2018 SALES SCHEDULE column 7 RECAPUTRE posted to line 9 of the 1040 to take the appropriate business deduction?

"2018 Sales Schedule" makes sense only to the partnership's return preparer, not us.

The IRS expects 199A QBI information to be in the K-1 Box 20 Codes Z-AD. Does your K-1 not have that?
The partnership cannot determine the allowed QBI deduction of its partners since that is computed at the individual partner level based on each partner's unique tax scenario (taxable income, etc.)
eg75
Level 2

Where in Turbo Tax Premier do I get an MLP K-1 2018 SALES SCHEDULE column 7 RECAPUTRE posted to line 9 of the 1040 to take the appropriate business deduction?

Thanks. Box 20 includes an AD with is a -$4,000.  The gain subject to recapture as ordinary income in Column 7 of the 2018 sales schedule is a whopping $25,000!  That is raising my income but seems to reduce capital gains, which is real bad for me.  Do I really need to post that to Part II line 10 of Form 4979 and Form 8949 of Column G as mentioned on the sales schedule?
eg75
Level 2

Where in Turbo Tax Premier do I get an MLP K-1 2018 SALES SCHEDULE column 7 RECAPUTRE posted to line 9 of the 1040 to take the appropriate business deduction?

I did find out that I have to use the QBI worksheet 12-A.
eg75
Level 2

Where in Turbo Tax Premier do I get an MLP K-1 2018 SALES SCHEDULE column 7 RECAPUTRE posted to line 9 of the 1040 to take the appropriate business deduction?

Oh.  You don't know about the Sales Schedule.  Ok.  Got it.  Thanks!

Where in Turbo Tax Premier do I get an MLP K-1 2018 SALES SCHEDULE column 7 RECAPUTRE posted to line 9 of the 1040 to take the appropriate business deduction?

There's a bug in TT.  It has the logic to deal with this in the interview, but it doesn't.  See this answer for how to trigger it to grab the Ord Gain from the sale:  https://ttlc.intuit.com/questions/4689809-how-does-turbotax-add-ptp-ordinary-gain-into-the-qbi-deduc...


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Use any advice accordingly!

Where in Turbo Tax Premier do I get an MLP K-1 2018 SALES SCHEDULE column 7 RECAPUTRE posted to line 9 of the 1040 to take the appropriate business deduction?

how can I report 'gain subject to recapture as ordinary income' in Turbotax 2019 premier?

DaveF1006
Expert Alumni

Where in Turbo Tax Premier do I get an MLP K-1 2018 SALES SCHEDULE column 7 RECAPUTRE posted to line 9 of the 1040 to take the appropriate business deduction?

If in your Turbo Tax the gain as a sale of a business whether it be Real Estate or other disposal assets, Turbo Tax will automatically handle the recapture for you. What kind of property was this?

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Where in Turbo Tax Premier do I get an MLP K-1 2018 SALES SCHEDULE column 7 RECAPUTRE posted to line 9 of the 1040 to take the appropriate business deduction?

ordinary business income  $-2631

 

gain subject to recapture as ordinary income $4293

DaveF1006
Expert Alumni

Where in Turbo Tax Premier do I get an MLP K-1 2018 SALES SCHEDULE column 7 RECAPUTRE posted to line 9 of the 1040 to take the appropriate business deduction?

Just a couple a questions to ask:

  1. Is this a sale of business property or reported on a K1?
  2. If a sale from business property, is it something that had been reported in the past and Turbo Tax has been keeping track on depreciation or is this the first year you used Turbo Tax. 
  3. This would be difficult to answer without additional background information.
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