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@Mike9241 - thank you for your response and detailed explanations.
To clarify, I will enter everything as one K-1, and put -383 in Box 1. (-383 + -2 = box 1+box2)
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Regarding the K-3: It will be available at the end of June, so I am filing an extension. I'm hoping that I won't have to do anything with the K-3? The letter that came with this K-1 package stated the following: "...all of our income is effectively connected with a US trade or business. However, a limited number of unitholders (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the detailed information disclosed on Schedule K-3..."
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In response to your statement: I do not know how 13K is reflected in the sales schedule. t your basis should be 49683 - the same as ending capital plus 157 the 751 gain + any amount of 13K that is not deductible.
Here is a pic of my Sales Worksheet that was also included that might help:
I highlighted the comment for Column 7 - not sure if it's important for capital gain calculations.
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I followed your instructions for the K-1 Sales Info. Lines 5, 8 and 9 are all 157 (line 20AB).
You then said: This amount flows to form 4797 line 10 and is taxed as ordinary income.
I wasn't sure what you meant here, since Form 4797 line 10 is:
10(a): From K-1
10(g): 3759
Line 10g is not equal to 157. Is it adding 157 to another number?
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I then continued to modify Form 8949 by reentering numbers in the TT interview section for my 1099B.
I computed my new correct tax basis:
50,200 (original 1099B cost)
-517 (Column 5 of Sales worksheet - Cumulative adjustments to basis)
157 (Column 7 of Sales worksheet - Gain subject to recapture as ordinary income)
So my new tax basis is: 49840
You mentioned (above) that my basis should be 49683. 50200 - 517 is equal to 49683. But you also said to add any amount of 13K that is not deductible. Box 13K is 152. I added 157 above.
Did I calculate the tax basis correctly?
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To "adjust" the cost basis of this stock on the TT interview, should I enter the Cost Basis as it is listed in my 1099B, and then check the box "The cost basis is incorrect or missing on my 1099-B" And then 2 screens later, I should check the box "I know my cost basis and need to make an adjustment" and enter the "Actual Cost Basis" here. ??
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One more question. I have another K-1 that is very similar (PTP stock that was a short term capital loss) that @Rick19744 helped me out with. His method was slightly different, but I believe amounts to the same result - that my sale is not entered twice (once on K-1 and once on 1099B). The difference is that I think all of the gain/loss is on the K-1, and we zeroed out the gain/loss on my 1099-B.
Will any flag be raised to IRS because I used 2 different methods to enter the 2 K-1s?
Here is the link to that discussion:
(Warning: It's pretty lengthy!)
Thank you!
