@jjm: TT's instructions to enter 0 for sales and basis don't always work correctly if you have Ordinary Gain. That's why I had to put this thread together. The essence of the post is that the only thing you want flowing through your K-1 worksheet is the Ordinary Gain. No cap gain/loss. No selling expenses. That's what TT was trying to do with the "enter 0" stuff, but they left out anything about how to handle Ord Gain.
The tax accountant who said to use the 1099-B basis doesn't understand MLPs. Your broker doesn't track all the K-1 adjustments to cost. Most likely, they just reported what you initially spent on the MLP. This is absolutely not the correct cost to use. You need to use the "Sales Schedule" to calculate what your Cap Loss should be, then adjust the 1099-B to get there (by entering the adjusted basis on that form). And yes, you can also adjust for the $8 broker fee, but do it on the 1099-B. Note that you don't need to override anything -- you can make the adjustments on the 1099-B and TT will then put that number on 8949.
Finally, also remember that all your passive losses from prior years will be released to partially (or in some cases fully) offset that Ordinary Gain. So it might not be as sad as you think....
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
