@nexchap Apologies in advance for long question, but you appear to be the go-to person for this. As such, would LOVE some hand-walking for my situation.
I bought and sold shares in an MLP in the same year (2021). The short-term gains were reported on 1099-B, with Box B checked; TT is reporting the sales as Box B checked.
Question 1. Do I need to adjust the cost basis of the shares reported in the 1099-B?
I read your first few posts about how to log items in the Schedule K-1 interview, but am still perplexed. Here are my numbers from the Sales Schedule:
Purchase Price: 3,839
Cumulative Adjustments to Bases: -314
Cost Basis: 3,525
Gain Subject to Recapture as Ordinary Income: 255
AMT Gain/Loss Adjustment: 0
Question 2. What values do I enter for the Sale Information part of the interview?
Regular Gain or Loss
- Sale Price: ?
- Selling Expense: $0 (there was none)
- Partnership Basis: ?
- Ordinary Gain: ?
- 1250 Gain: $0 (there was none)
AMT Gain or Loss (I'm not in AMT territory)
- Partnership Basis: ?
- Ordinary Gain: ?
- 1250 Gain: $0 (there was none)
Box 20Z lists "Section 199A Publicly Traded Partnership (PTP) Income" as -103. When TT asks "We need some information about your 199A income", do I put the -103 under "(MLP) has business income (loss) / Ordinary business income (loss)"? What's confusing me is the following description listed for the column for "Gain Subject to Recapture as Ordinary Income (listed above as 255)":
"The instructions to Form 8949 are unclear in the determination of capital gains where total gain on the sale of units is partially ordinary gain. Reporting this amount as a negative adjustment in Column G of Form 8949 should generally result in the correct capital gain or loss. The amount reported as ordinary gain is qualified PTP income for Section 199A and has not been included in the amount reported on Schedule K-1, Line 20Z."
"Form 4797 Form 8949" are listed under this column.
Question 3. Do I add the 255 to the "Ordinary business income (loss)", or does it go somewhere else, or none of the above?
Thanks, in advance!
