@nexchap
I went to my 1099-B and the data is very wrong. When MIC transitioned from a listed stock to a MLP, it was not reported as a sale on the 2021 1099-Composite and the ticker symbol did not change. The 2021 K-1 said to treat the conversion as a "disguised sale". which I did with the help of this forum and a retired CPA. A sizable distribution was reported on the 2021 1099 Composite that was not taxed. II calculated my profit as the sale price minus purchase price plus distirbution. My basis in the MLP was established by the cash in at what is best described as a "disguised purchase" (my term, since I didn't actually buy it.
There have been no distributions from the MLP in 2022. In 2021, it paid some qualified dividends. The MLP basically sold it's holdings off and shut down. To me, it seems fairly straightforward, the cash in in 2021 was the purchase price. The sale price in 2022 is my sale. I'm not seeing where the adjustments come from. I checked my 2021 1099-B and saw no distributions, only the qualified dividends. I also have no distributions shown on the 2022 1099-B.
On my 2022 1099-Composite, the sale of MIC was reported as significant loss. In reality, it was fairly profitable. I imported the data from Ameritrade and deleted the transaction, then entered the data treating it as a sale of a MLP. I tried to understand where the adjustments number came from and called Ameritrade, and they tell me they report it based on the information fed from the MLP. Will the IRS scrutinize my return because Ameritrade reported it as a stock sale, but I reported it as a MLP sale on the K-1?
