MLP 1099-B and K1

[darylm1984]

I have 2 1099B forms reporting sales proceeds of shares of Master Limited partnerships. They have the date sold and the proceeds but that's all. The entire transactions will be reported on K-1 forms from the MLP's themselves. Should I delete the 1099B info and use only the K1 info when I receive them - in mid March?

[Rick19744]

You should delete the 1099-B details if this activity will be reported on your K-1.  

[nexchap]

This isn't correct.  The K-1 MLP interview can not handle partial sales (the instructions tell you to use the broker's 1099Bs), and its not effective if you have both short and long term gains.  The only time you can safely use the K-1 MLP interview is if you've done a complete sale, where all the gains are either short or long.

[Rick19744]

The poster indicates that the entire transaction will be reported on the K-1.  If that is what is stated, then that is what I am relying on.  I certainly don't have the ESP that you apparently are gifted with.  Use your gift wisely.

[nexchap]

Just to clarify, and no ESP:  The K-1 for a MLP will always include a sales schedule which shows any transactions that occurred for the MLP.  Those sales generate both ordinary income, and capital gains/losses, which are also broken out on the K-1.  However, when it comes time to actually report the capital gains/losses, that info has to make it to a 1099-B.

Unfortunately, the K-1 interview has only limited ability to correctly create a new 1099-B.  It won't do it right for partial sales, and it won't do it right for combined short and long term sales.  So that's why I added this info:  your answer only works in one case.

[darylm1984]

I plan to use the K1's. Sales are complete and all long term.

[Rick19744]

Clarification is helpful for others that may have that situation and review this post.