TT duplicating K-1 entries gain/loss

[ekimpmac]

I received a final K-1 for a real estate partnership, the property was a complete loss. The long-term loss is reported on the K-1 on line 9a, which then correctly reports to line 12 on schedule D Part II. All of the other entries are put into the correct lines, and I have checked Final K-1. However, this seems to create a big problem. When I try to file, TT forces me to check box 1a on the K-1 Additional Information form Part II, complete the dates of acquisition and disposal, and add the sales and basis amounts. Once I've done that, the loss is then added to the list of LT losses on Form 8949 Part II and therefore duplicated on Schedule D (it appears in Schedule D Part II both in the totals on line 8b and separately on line 12). How do I prevent this duplication from happening? thanks

[DavidS127]

Because this is a final K-1, in addition to the loss reported to you on the K-1 by the partnership for partnership operations during the year,  you also have to report your disposition of your partnership interest that was liquidated. 

So, those Part II questions are not asking about the same amounts reported to you on the K-1.  Instead they are asking about your interest in the partnership that was "disposed" when the partnership terminated:  when you acquired your interest in the partnership, when it was disposed of (date partnership ended), your sales price (which may be zero), and the cost basis of your partnership interest on the date the partnership was terminated and all final distributions had been made.

Note that passive losses suspended in prior years can be deducted in the year the real estate property is sold.

[Edited 03/27/2020|11:22am PST]