In K1 "This partnership ended last year." Does this mean I sold company stock? or The company itself changes? The meaning is very confusing to me.

[PatriciaV · Accepted solution]

If your Schedule K-1 is marked "Final" at the top, you would choose the option "This partnership ended last year."

If you sold your interest in the partnership, you would check the box for "Disposed of a portion of my interest..."

[sgkang]

My gains for this transaction were already reported in 1099B while importing from my brokerage account. If I report it again through K1, will it cause duplicate of those gains?

[PatriciaV]

Yes, entering the sale twice would duplicate the gain. Enter only Form 1099B.

[RR-fromMaryland]

If there are PTP listed at the bottom of my brokerage form labeled : NON-1099 distributions (partnership distribution) and I received some of the companies K-1, where do I enter that information?

[ThomasM125]

You would report most things associated with the partnership off of the partnership K-1 form. If you received distributions from the partnership, you only need to report them if they are taxable, which would only occur if you received more in distributions than your basis in the partnership, which is rare. 

[TBob1]

When I check the "Final K-1" box, and choose the "Partnership discontinued" box, why does TurboTax final review ask me to fill in the "disposition of partnership interest info" as though I had checked that box instead?

[WendyN2]

For income tax purposes (by definition alone and in right), in order to discontinue a partnership one must "dispose" of the assets of the partnership. Therefore, you must fill in the information for the disposal of the assets (or, verbatim, the "partnership interest info"). 

Understanding Discontinuance of Operations

[pixiedent]

I am not an expert at this, but I was puzzling over the same question and as far as I can tell, the thing to do is check This partnership ended, and then "Disposition was not via a sale", after which you enter the dates of purchase and sale.

[DaveF1006]

You would enter your date of purchase for your interest in the partnership but the date of the sale would remain blank if you didn't sell your interest.

[BillJZ]

If the "Final K1" Partnership merged with another PTP and my units were converted to the new PTP, how do I report the built-in gain(loss) of my contributing (old PTP) units?  How do I describe partnership disposal?  "No Entry", "Complete Disposition" or "Disposition was not via a sale"?

[PatriciaV]

For a merger, you would choose "Disposition was not via sale." This choice will allow you to continue without entering sales information, but will zero out the investment and report any gain/loss on the disposition. Your Schedule K-1 from the new PTP should have a contribution amount similar to your ending capital in the previous PTP.

[BillJZ]

Thank you, but please clarify.  My brokerage 1099-B did not reflect the merger as any capital gain/loss.  My remaining capital in the "old PTP" was used to acquire units in the "new PTP".  The new PTP K-1 package reports my capital gain/loss from dissolving of the "old PTP".  I look at this transaction as basically selling my investment, claiming my gain/loss and then buying units in the new PTP.   Looking at the "old PTP" K-1 Additional information Form (not using Step-by-Step), Part II, items 1-12, I filled in the info as though it was a sale.  The items checked were 1a, 1a(1), 2, 3 4, 5, 6, 7, 8 and 11 (long-term).  Seemed like the only way to report the capital gain for this "PTP merger".  Please comment or ask for additional info.

[PatriciaV]

It appears you reported this transaction correctly as a sale.

[BillJZ]

The software should have the ability to do this in the “srep-by-step” section.  It could automatically check thing like long vs short term, merger fees, …. Please pass this request onto the software team.