VANGUARD NATURAL RESOUCES 1065 K1 : Why I am paying to IRS for 0.000 income

[userIN]

Hi, I received 1065 K-1 from vanguard.  I have difficult time to fill it in turbo tax. In my 1065 box L i have following option:

capital distributed during the year   9343
current year increase(decrease)   5378 (shall I put thus number -)
withdrawals & distributions (14721)

So what shall I do. Shall I put 14721 as -14721

Also in box 17, there is a * and answer is STMT

Also in box 20 there is a * and answer is STMT

When I use turbo tax there is no option to select *Please help. I have to amend my form as I already submitted it. Just received this 1065 K1

I think i am paying taxes on 5398, why?  I never received this money.

I have attached all picture from my tax return

thank you

[ToddL · Accepted solution]

Thanks for the screenshots!

In the "Withdrawals and Distributions" box, enter the $14,721 as a negative number .

When you get to Box 13, enter "T" in the Code box and leave the amount blank (not "0", just blank). See attached sample screen. Selecting "Continue" will open additional screens to enter the detail in the statement. You'll have to interpret the TurboTax descriptions to see how they match the Vanguard Descriptions, but these entries are unlikely to affect your return.

When you get to Box 17, enter the Codes and amounts shown on the STMT page (see attached sample screen).

When you get to Box 20,  enter "T" and "Z"  in the Code box and leave the amounts  blank (not "0", just blank). Selecting Continue will open additional screens to enter the detail in the statement  (see attached sample screen).

Did you sell the investment in 2016? You are paying taxes on $5,398 and that amount should have been  included in the "Withdrawals and Distributions" amount.

Check this article for guidance on how to access the "Amend a Return" feature. How to Amend (Change or Correct) a Return You Already Filed

[userIN]

Dear, TurboTaxToddL

Thank you very much for your time and answer. I highly appreciate your help. Yes, i sold my shares as the company went bankrupt. But bad part: now I have to pay 800 in taxes. Though I never received the money they filled in their form 1065 K-1. Do you think anything i can do before amend my taxes.

Thank you

[ToddL]

Did you get a Form 1099-B for the sales?

[ToddL]

And how much of the $14 K distribution did not come to you?

[userIN]

Shall I call my broker or the company about this issue?  thanks a lot for your time and help. Best Regards

[ToddL]

Yes, call your broker. If you did not get the full distribution reported, you may be able to claim a loss on the sale of your interest in the partnership.

[userIN]

Thank you, TurboTaxToddL. I will call them right now. I checked my filing and I didn't see anything from them specially that $5398 profit on which I am paying taxes.

[userIN]

that 14k is negative? right

[ToddL]

You enter it in TurboTax as a negative number, but if you didn't receive a distribution, your basis in the partnership would have been higher than indicated resulting in a greater loss when sold.

[ToddL]

Yes, you'd "pay" tax on your share of income, but make up for that by your loss on the sale.

[userIN]

Sir, Just called my broker.. They asked me to call VNR. So I called the company that issue their 1065K. But so far no help.  How can I claim this as my loss in turbo tax. I am using online version.

He said Col 19 is your distribution.. which is null as shown in my snapshots. Somebody in Yahoo message board mention that they sold some unit to pay their debt and now investors are paying taxes on their profit. I am not sure the credential of this news!