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Get your taxes done using TurboTax
@BarbK Sticking to the general principle of handling all the Cap Gain/Loss entries on the 1099-B, and only dealing with Ordinary Gain on the K-1:
- For each of the many ET K-1s, you'd enter that the partnership has ended through a complete disposition. This will trigger TT to release the suspended losses.
- The ET K-1 should (but might not) break the Ordinary Gain out between the different entities. On your K-1, it may be in the line 20 codes (maybe AD?). If it does, you have the Ordinary Gain you need to handle each entity just like any other MLP sale: 0 proceeds, and basis set to the inverse of the Ordinary Gain.
- If ET didn't break out the Ordinary Gain, you could just enter it all on any of the sub-entities. Its not going to change anything, since its all aggregated again on Form 4797.
- Note that the Ordinary Gain also gets counted when entering the 20Z info (for the QBI deduction). However its split for the sale is also how you'd report it for that set of interview questions.
I hope that's clear. When you finally get it done, have a celebration that you'll never have to deal with an ET K-1 again!
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
‎April 2, 2021
4:43 PM