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Returning Member

How do I report K-1 MLP sale that has both long & short term holding periods. There is no separate breakdown of long & short term on sales schedule only totals.

There were 1.5 splits offered on the long term units. How do I figure separate adjustments to basis and ordinary gains for the long term and short term?

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Returning Member

How do I report K-1 MLP sale that has both long & short term holding periods. There is no separate breakdown of long & short term on sales schedule only totals.

I have only sold MLPs that I have owned long term.  But the K-1 includes the Sales Schedule and it will show the ordinary gain so that part goes on the 4797.  So I think the only question is about how to adjust the basis for both long term and short term holdings on MLP for Schedule D reporting.  If that information is not provided on the K-1 I would think you could figure it out be gathering all your K-1s and 1099s from the time you owned the MLP.  I know if I look at my K-1 it will show the distribution for the year in the partner's capital account analysis section.  

Now this part I might be way off on, but I think the basis will also be reduced by the depreciation, but I think that depreciation recapture is what makes up the ordinary gain section.  

I would get all your K-1 and then figure you can calculate the adjustment to basis manually using all the past K-1s and see if that number matches to the Sales Schedule adjustment to basis.   

Let us know what you find.