Get your taxes done using TurboTax

Hi Nexchap;  Some more information that I think solves my issue and hopefully others.  In the TT interview, I followed everything you said, i.e. "Partnership ended in 2020", then next screen "Complete Disposition", then next screen "Sold Partnership Interest".  Then enter the dates sold then get to the "Enter Sales Information" screen.  Then entered the following based on my Sales Schedule which only shows dates, and: Purchase Amount ($2,400), Adjustments to Basis ($820) and Cost Basis ($,3220):

Sales Price = 0

Selling Expense = 0 

Partnership Basis =0

Ordinary Gain = 

1250 Gain = 

Did this based on what you said and the instructions from TT for line 5 and 7.  Since Line 8 Ordinary Gain is calculated by TT, didn't enter anything.  Interesting it says what you previously recommended (see below) - guess they've updated something. 

I then adjusted the 1099-B Cost Basis by adding the $820 for a net total of $3,220.  That shows a loss of $120, but in the end it balances out.   Everything else seems to appear correctly.  Form 6781 shows $328 short term and $492 long term, for this USO Partnership.  Schedule D now shows for the Broker 1099-B for this transaction that I adjusted, a loss of $120.  Best part, NO new Entries on Schedule D.  

 

With the Short and Long Term split with USO's K-1, my taxes actually went down by $60.  So I'll file an amended return with the new K-1 info.  I guess it is best to state that "adjustments made to 1099-B for this transaction due to K-1 information".  Should be OK - Did I do the correct inputs? 

Thanks Again for all your Help and I'm sure this thread will help others in a similar situation.  

 

Oh, here is what 2020 TT for Line 5 and Line 7 say (see NOTE): 

Line 5 - Sales price

Enter the selling price of the interest. For abandonment, enter zero. For liquidations, enter the value of the assets received. NOTE: If this is a disposition of a publicly traded partnership (PTP) or a master limited partnership (MLP) that was reported on a Form 1099-B, enter zero for both the sales price and the basis on lines 5 and 7 here and report the sale as normal on Schedule D, checking the appropriate "Reported on 1099-B" Box A or Box B. By reporting the sale of the PTP or MLP on Schedule D and entering zero as the sales price and basis on this K-1 Worksheet, the disposition will get processed correctly throughout the return.

 

Line 7 - Basis of partnership interest

Enter the partner's basis in the partnership here. Ideally, basis should be tracked each year on a worksheet in a permanent tax file. The program will assume that the basis for Alternative Minimum Tax purposes is the same as for regular tax purposes. You may change this entry, if this assumption is not correct. NOTE: If this is a disposition of a publicly traded partnership (PTP) or a master limited partnership (MLP) that was reported on a Form 1099-B, enter zero for both the sales price and the basis on lines 5 and 7 here and report the sale as normal on Schedule D, checking the appropriate "Reported on 1099-B" Box A or Box B. By reporting the sale of the PTP or MLP on Schedule D and entering zero as the sales price and basis on this K-1 Worksheet, the disposition will get processed correctly throughout the return.

 

Lines 8, 9, 10 and 11 - Gain (loss)

The program will calculate lines 8, 10, and 11. In the case of liquidations, enter any ordinary gain, as reported by the partnership, on line 9. Note: In the case of abandonments, the entire loss will be treated as ordinary loss and be shown on line 9.