I received a K-1 that included a sales worksheet for a partial number of shares of the MLP I disposed of. There is a column 6 that includes the Average Cost Basis that it states should go on Form 8949 Column E. The number is the result of subtracting the column 5 Cumulative Adjustments to Basis from the column 4 Average Purchase Price/Initial Basis Amount.
There is also a column 7 with a value for Gain Subject to Recapture as Ordinary Income that says it should go on Form 4797 Part II Line 10.
Also include on the worksheet are columns 10 and 11 under a heading "Adjusted for Bonus Depreciation" with reduced amounts for Cumulative Adjustments to Basis and Gain Subject to Recapture as Ordinary Income.
According to the instructions for Columns 10 and 11, you're supposed to use those amounts "if filing in a state that does not conform to the federal rules regarding bonus depreciation". I live in Texas where we don't conform. Do I use these values on my federal return from Columns 10 and 11, or use the values in Columns 6 and 7 because 10 and 11 are only used on State Taxes (which Texas does not have)?
Thanks in advance for any input.
posted
March 23, 20241:21 PM
last updated
March 23, 20241:21 PM
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