Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Still need to file? Our experts can get your taxes done right. Get started >
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
bezdecor
New Member

K1 disposition and 1099-b, double reporting. Had undistributed 1256 income on k1 each year of ownership, which is not accounted in cost basis on 1099-B.

 I have received a final K1 after selling an exchange traded fund. Each year of ownership I received a K1 and the profits in the fund were taxed, but the profits were suppose to offset the cost basis. Now I have a k1 with proper adjusted cost basis. But this sale was also reported to me on 1099-B from broker without cost basis adjustment. Do I remove that sale from my 1099 and  adjust my long term gains reported by broker? Or do I enter adjusted cost basis on 1099 instead and report 0 in cost and sale price in k1? Or do I report the properly adjusted cost and sale basis on K1 and remove from 1099?

1 Reply
maglib
Level 10

K1 disposition and 1099-b, double reporting. Had undistributed 1256 income on k1 each year of ownership, which is not accounted in cost basis on 1099-B.

When you fill out the 1099-B make the cost and the proceeds the same and state in the description K-1 reported XYZ partnership, this way the IRS knows you reported the proceeds. The k-1 entry will appropriately report the gain/loss.

**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies
v
ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_~