Need help with entering K-1 of a publicly traded LLC I sold in the middle of last year. The gain was also reported on my 1099-B from my brokerage.

[Adamo34]

I owned shares of NGL, a publicly traded LLC for less than two years and disposed on ALL of them before the end of the tax year.  The entire capital gain I thought would be captured on my 1099-B, but then NGL sent me a K-1.  Why in the world would I need to do anything else?  What do I need to do with the K-1?

[MichaelL1]

This happens very often, then you get a K-1 that shows the sale, and then also get a 1099B.

I like to show the sale in the K-1 section, as it has my capital account there.

However, you can show it in 1099B investment sale section, or the K-1 section.

Only show the sale once, and keep the information in your tax file. 

If the K-1 has income or expenses for your share while you owned it, you would still need to enter that part, just not the sale information as it is already reported. 

[Adamo34]

If the Box 1 (of Part III) of the K-1 is negative, do I need to input the K-1 at all?  It's particularly annoying in my case because my K-1 also has data for some other subsidiary LLC.  The combined gross income of the two is negative.

If it is the case that I don't need to do enter a K-1 if box 1 is negative, why does the Turbo Tax software prompt for more information?

[MichaelL1]

Anytime there a loss on a K-1, TurboTax has to determine if it deductible.  So it may ask about "at risk" or the capital account.

[Adamo34]

The effort of getting a deduction on a $158 loss (which last year's from the same LLC wasn't) isn't worth it.  I'm more worried about the dudes taking my money in the first place.  Are they gonna audit me if I don't put in the K-1?