@J295-- To answer your specific question: distributions in excess of basis would be reported as long term capital gains, which you can do by creating a 1099-B. So if you need to report $100, you'd just have a 1099-B with code F that reports a sale of $100 and cost of $0. You can do this in forms mode, or in the interview when it asks you if you have sales not reported by your broker. You can't use suspended losses to offset this.
But your situation is a lot more complex than that, and this is where I advise talking to a CPA because its more complex than simply getting the right info into TT. First, your 'tax basis' is not the same as your capital account: the share of nonrecourse liabilities EPD allocates to you also figures in. In accounting for future suspended losses, you no longer have capital at risk, which means form 6198 enters into your return. Changes in nonrecourse allocations from year to year will need to be watched. When you sell, making sure Ordinary Income matches with the changes in your allowed suspended losses may or may not be reflected in the K-1. All-in-all, a mess which I'm not fluent enough to walk anyone through.
You do have two options to at least keep the problem from continuing into 2021:
- Buy more EPD, since any purchase will increase your capital account. You'd have to buy enough to get back above 0, and hopefully keep you above 0 for a while.
- Sell all of EPD, and then buy back in 31 days (to avoid a wash sale). That will close out all the calculations for your current holding, and allow you to start fresh assuming you still want to hold EPD.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
