I read all your response to others and learn a lot from TT experts
@Mike9241
@nexchap
Could you help me to related others question ?
Given infor
1099B sale Energy code B 200k cost 150 k
1099 B sale Energy code E ( not report basic to irs) 150 k cost 100k
K1 final from Energy Partnership PTP
I cited out code and box for computing cost basic as you mentioned ( I input all info in K1)
Beg capital $200 k
Contributed capital during the year $40k
current net income $2k
withdrawal distribution $238 k
box 19 A distribution $20k
box 20A $2k ,20 N $8k and 20V $3k
Sale schedule has info
Cummulative $-51 k
Average cost basic $248 k
Gain subject to recapture as ordinary income $61 k
Please help
Q1 Adjsuted cost basic for 1099 code B ?
( I think either makes sense to me)
Option 1: beg capital + capital contributed in the year = $200k+ 40 k =$240 k
How to split cost code B and code E ?
can I use this option?
Option 2: Average cost basic $248 k ( sale schedule put reference form 8949 column E)
Should I split code B and E 1099 b?
Option 3: as you advised us
cost original on 1099 b 150kplus cummulative
Adjustment to basic -51 k and add ordinary income 61 k=160 k
we ignore to adjust basic cost as original code E 1099 B , correct?
Which option is correct one ? Compliance guideline of irs ?
Q2
I like your advise to match number with irs record
Because I use Proseries : I put dispose complete
sale 0 cost 0 as tax software instructed
then I put ordinary gain $61 k , it flows out to form 4797 part II line 10 $61 k
and 61k capital Loss on sche D short term ( sale 0)
thus 1099B no add ordinary income 61 k code b 1099B
please advise me using above or below
should I put sale price $61 k (
or should I go direct 4797 input ordinary gain / gain subject to recapture $61 k
and adjust basic cost on 1099 B code B ( irs does not have record sale $0 and loss $61k )
As you said we want the number sale proceeds match with irs record
Your response would be appreciated . Specially in tax seasoning
