NEXCHAP - thanks so much for all your postings in this thread. As a seriously non-professional in the accounting/tax prep world, I've been relying on TT Deluxe for many years and am using it for tax year 2019.
This thread now is 13 pages long and contains 1099-B codes and K-1 + accompanying sales schedules references and column headings from you and other posters to that don't coincide with what I recently received from my broker or the PTP's 2019 final K-1. Furthermore, I note apparent changes in the tax code from 2018 to 2019. I'm not sure how to proceed. Updated guidance from what you originally provided on page 1 of this thread would really help!
My situation: I file jointly with my wife In 2013 she inherited a brokerage account from her father that includes units of Buckeye Partners LP. There haven't been any additional unit purchases or partial sales since then, although we have no knowledge of any previous purchases or partial sales prior to the inheritance. Last Nov, the PTP was dissolved; all partnership units were converted by Buckeye into the right to receive cash with no other rights. Using my layman's language, I consider it to be an involuntary "conversion" into cash, otherwise perhaps a "forced sale"(?).
The brokerage account's 1099-B lists the transaction as an "exchange", with "cost basis not reported to IRS - Form 8949, (X)". The 1099-B lists only the date of acquisition, date of disposal, proceeds, and cost basis. Gain/Loss is listed as "N/C". The PTP's K-1 Part II J shows all 3 percentages zeroed, and Part II L has the ending capital account at zero as I would expect. Part III 13K has an entry. The attached sales schedule shows the transaction description as "DA Sell" provides the sell date and number of units sold, and columns for initial basis amount, cumulative adjustments to basis, cost basis, gain subject to recapture as ordinary income, AMT gain/loss adjustments, and that 100% of the transaction is considered long term. The sales proceeds column is blank.
I plan to begin by entering the K-1 data in TT using the interview view and letting TT provide the 1099-B that I will ultimately edit by adding some corrected cost basis number as well as other associated forms (that I need or don't need to edit). I'm very insecure about what exactly I need to do; and apparently there are additional, new forms beginning this year. Can you please provide an updated step by step of how I need to do this task correctly, including which which type of transaction this really is (sale, exchange, etc.?) so TT doesn't raise flags on final check and so I don't cheat either Uncle Sam or ourselves on this year's taxes? Are inherited PTPs handled differently than what the thread has described?
