@nexchap Again, appreciate your quick reply and confirmation! For 2) above, it just makes me think (or realize) that MLP investment may have additional tax "gain" (large amount of business loss to offset other passive income), as well as the tax advantages of deferred tax on the regular distributions. I just did a test using TT (only EPD K-1, and some bank interest), it shows that the bank interest is "absorbed" by the business income loss from the K-1 (Box 1 - Ordinary Gain to Recapture). BTW, this seems not requiring a complete sale of all units.
I started to work on my 2nd K-1 (USO), which is a simpler case - 100% sale, all short-term. K-1 Sales Schedule does not have the column for "Gain subject to Recapture", so I assume it is 0. I tried both methods (using the TT K-1 interview, or your method) and seems the results are the same. One more question though - on K-1 Sales Schedule, there are two lines (for two sales dates, but the units sold on each line have different purchase dates). On my 1099-B, there are 4 lines for the same total amount of units (corresponding to 4 buy and 2 sell transactions). How should I enter the sales in TT during K-1 interview (in 2 transactions?)and/or 1099-B (in 4 transactions?)? I guess it depends on what info IRS is receiving from Broker and MLP, and expecting to see from the Return. Any guidance is very much appreciated!
