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.

[PAGB]

@gerryj1216 

I am not a CPA or anything and can't say I understand it fully so I can just tell you what I  for our specific case. But I think someone with more knowledge would be able to help you with your specific case better

We had a Final K-1, PTP,  All ETF stock bought and sold in 2021

Box11 (code C) had a negative value and all other boxes were either zero or empty

Describe the Partnership ( I've checked) : This is a Publicly Traded company and This Partnership Ended in 2021

Describe Partnership Disposal (I've Checked): Complete Disposal

Also checked "all investment is at risk"

I think if you head over to this thread and give more specific details about your case (if you want to) you could possibly get more help.

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale...

[keys 407]

Can you tell me then, if you don't enter the sale to avoid duplicating the tax liability, what do you do? It seems like I have to enter that I disposed of a portion of the partnership, but if I do that, I end up having to put in sale proceeds. Should I just not check it? My K-1 does not say "Final" but I did in fact liquidate the investment in 2021. 

[MarilynG]

Do you have Sales Info with your K-1?  Did you receive a 1099-B?  If not, wait until you receive your Final K-1 to report the disposition.

If you do have K-1 Sales Info and a 1099-B, see the post from @JamesG1 above to avoid double-reporting the sale.

Click this link for detail on Reporting Disposition of Partnership that may help you. 

[Winter8061]

We bought and sold an ETF in 2021 and received final K-1 form. According to your suggestion, we reported the sale on IRS Form 1099-B Proceeds.  When doing K-1 entry, we selected "This partnership ended in 2021" at the screen of Describe the Partnership and "No entry" at the screen Describe Partnership Disposal. But in the view of K-1 form in TT, Final K-1 box is not checked though this is a final K-1.

When I went back to edit K-1 entry, "This partnership ended in 2021" was not checked though I definitely checked it earlier. 

Do I have to choose "Complete disposition" instead of "No entry" even I already reported the sale in 1099-B?

[JamesG1]

You would want to report Complete disposition at the screen Describe Partnership Disposal if you are carrying passive losses related to the activity.

If you disposed of your entire interest in a passive activity or a former passive activity to an unrelated person in a fully taxable transaction during the tax year, your losses allocable to the activity for the year are not limited by the passive loss rules and any passive loss carryovers are allowed in full. A fully taxable transaction is a transaction in which you recognize all of your realized gain or loss.

The entries would be: 

• At the screen Describe the Partnership, you report Disposed of a portion of my interest....,
• At the screen Describe Partnership Disposal, you report Complete Disposition,
• At the screen Tell Us About Your Sale you reported Sold Partnership Interest,

Since the sale is reported within the K-1 screens, you would not report the sale on IRS Form 1099-B Proceeds.

Make sure that the sale is not reported twice.  Review the sale of the investment reported on IRS Form 8949 Sales and Other Dispositions of Capital Assets and IRS Form 1040 Schedule D Capital Gains and Losses.

You are able to view the entries at Tax Tools / Print Center / Print, save or preview this year's return.

[Edited 4/4/2021 2:45 PM PST]

@Winter8061 

[keys 407]

I have another K1 question. In part 2, 13, there is a W*. I go to the asterisk, it says see attached statement for additional info. I go to the additional info, it says see page 12 of IRS instructions. I go to page 12, there's nothing about W, but on page 13 there is, and it lists many things the W COULD mean, but shouldn't my K1 tell me what the W means? Turbotax is asking me to enter what it means, and I'm literally on a wild goose chase, everyone pointing somewhere else to explain it. What should I write? 

This is the IRS page they linked me to:

https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf

[AliciaP1]

You should contact the partnership at the information on the letter you received with your K-1.  The statement provided should identify the line item(s) for code W in box 13.

@keys 407