You can not report the 1099-B sale through the K-1 worksheet, only the ordinary income recapture. Using the K-1 for the entire sale will result in it being coded either type C or F on the 8949. SALES PROCEEDS NOT REPORTED TO IRS. They got the 1099-B but the type was B or E, meaning the sales proceeds were reported to the IRS. When the iRS computers go to match the sales proceeds reported by the broker and the sales proceeds reported by you, it will likely come up with a mismatch because of the different types. Any refund will likely be delayed until the IRS sends you a notice about the mismatch and you respond. This can delay a refund 4 to 6 months because the response will be handled by a human. Turbotax even warns you not to report the 1099-B sales portion on the k-1
when you sell a ptp there are usually 2 types of gain/loss 1) section 751 ordinary which flows to form 4797 and then to schedule 1 and 2) a capital gain/loss to schedule D
to recap for you, sales price 8414 with an adjusted basis of 2141 meaning you had an overall gain of 5273
it's just that the overall gain is two pieces an ordinary gain of 8526, resulting in a capital loss of 2253
note that the 8526 should be added to current year qbi. also any suspended losses should be released.
you have found 1 of the dangers of investing in a PTP. the ordinary income recapture turns some of the gain into a capital loss. The longer you hold it the more the ordinary income recapture builds.
