I owned shares in a public K-1 partnership. It was absorbed into another K-1 partnership and I received shares of the absorbing company. Is this a "complete disposal"?

[dvdbrg]

My K-1 for this publicly traded partnership (PTP) show that the partnership as "ending 12/17/2018." The company that acquired the company I had originally bought into simply exchanged my existing shares of the old company for shares in the new company. Turbo Tax is asking me to "choose how you disposed of the partnership." My options are:

No entry.

Complete disposition.

Disposition was not via a sale

Sold and am receiving payments

I'm uncertain which applies in my situation. The companies in question here are Spectra Energy Partners, which was absorbed into Enbridge.

[nexchap · Accepted solution]

"Disposition was not via a sale".  This lets you do all the K-1 entries for Spectra, but leaves the losses suspended for 2018.

Next year, when you're completing your Enbridge K-1 (2019 taxes), TT will ask you if you have suspended losses from 2018.  You'll manually enter the Spectra numbers into the Enbridge form. 

[dvdbrg]

The information I provided in the original questions was wrong. Enbridge is a C-Corp with common shares and not a limited partnership. The PTP shares were exchanged for shares in a normal corporation and not another master limited partnership. There will be no K-1 for next year. Given that, I assume this will be a "Complete disposition." Am I correct?

[nexchap]

Yes.  Complete disposition.  You treat it as though you simply sold SEP for cash (your sale price is whatever the closing price for ENB was that day -- or whatever ENB told you in the closing letter).  Then you turned around and bought ENB with that cash (setting your purchase price for ENB).

[Ladyhawk60]

Situation is similar to other person.  Company was purchased by another company.  Limited partnership.  Shares exchanged on 7/29/19.  Where do I find the line to enter the suspended losses as I had to enter 2 1065 K-1s for 2019.  One for the Limited Partnership that was sold and ended as of 7/29/19 and another for the company that bought them out and exchanged the shares to the new company.