I've done a partial sale of a publicly traded master limited partnership. In the past, I've only been allowed to reclaim prior year losses to the extent that they offset the current year's operating income from the MLP. My understanding is that all of my prior year's losses will be reclaimed when I liquidate all of my interest in the MLP. This year I have both operating income and ordinary income resulting from the partial sale. TurboTax is using all of my prior year losses this year even though these losses exceed the current year's operating income. Is this because I'm allowed to use prior year losses to offset the ordinary gain from my partial sale? Or is there a problem that the program isn't recognizing that this is only a partial sale, not a complete liquidation?
