Get your taxes done using TurboTax

Report these as two separate sales. You received two different 1099-B forms from separate accounts, and the IRS will look for those exact entries to match what the brokerages reported. Combining them could trigger a matching notice, since the IRS system won’t see a single $65,000 sale on your 1099-B records.

Entry 1: Report the sale associated with the $15,000 investment.

Entry 2: Report the sale associated with the $50,000 investment.

When a partnership is liquidated, you actually have two "halves" of the transaction to record in TurboTax. First, let's address the K-1.

1. The K-1 Entry (The "Inside" Basis)

Go to the K-1 (Form 1065) section. You will likely have received one K-1, or perhaps two if the partnership tracked the accounts separately.

1. Check the box that says "This is a final K-1" and "I sold or otherwise disposed of my entire interest."
2. TurboTax will ask for your Basis. This is often the part that trips people up. Your basis is not just what you paid; it’s adjusted by the income, losses, and distributions reported over the years on your K-1s.
3. The "Double Counting" Warning: TurboTax will ask if the sale was reported on a 1099-B. You must answer Yes. This tells the software to coordinate the K-1 data with the 1099-B data so you don't pay tax twice on the same gain.

2. The 1099-B Entry (The "Outside" Sale)

Go to Investment Income > Stocks, Mutual Funds, Bonds, Other.

1. Enter each 1099-B info exactly as it appears. 
2. Crucial Step: When it asks for the Cost Basis, use the adjusted basis calculated from your K-1 records. Often, the 1099-B from a brokerage will show a cost basis of $0 or the "original" purchase price. This is frequently incorrect for partnerships.

Since this is "part of a trust," ensure you are working within the TurboTax Business (for Form 1041) or the specific Trust section if you are a beneficiary receiving a K-1 from the Trust itself.

1. If the Trust is a Grantor Trust, the activity flows directly to your personal 1040. 
2. If the Trust is Irrevocable, the Trust itself pays the tax (or passes it to beneficiaries), and the entries must be made on the Trust's tax return