Invested $10,000 in a partnership with my ex-company (they were owned by a private equity firm) in 2018. In 2024, the ex-company went public and they gave me 300 shares @ $50/share as a result of the partnership. So the 2024 K-1 shows beginning capital account as $10,000 and ending as $0 with withdrawals and contributions as -$10,000. This is not the final K-1 (the box is not checked).
Is it correct that I have to pay long-term capital gains on the proceeds even though I haven't sold any of those 3000 shares? Cost basis: $10,000. Proceeds: $15,000 (300 x $50/share). Gains: $5000.
When I do sell these shares in the future, at that point, my cost basis for the shares should be $50/share, correct? Even if the broker has some other number, I should correct the cost basis myself.
Even though I did not sell anything, and only had these 300 shares given to me by the ex-company, should I answer "yes" to Turbo tax questions "Disposed of a portion of my interest in partnership during 2024?" and "Sold Partnership Interest?'
Turbo Tax says that starting 2024, IRS is requiring partners receiving property distributions to file a new form 7217 - Partner's Report of Property Distributed by a Partnership. The ex-company did not file Form 8893 on my behalf but from what I understand if the distribution is of cash or equities (shares), I do not need to file the new form 7217. Is that accurate?
For Turbo Tax question "Describe the Partnership", should i check the box "All of my investments in this activity is at risk"?
Thanks in advance!
