in your k-1 package there is a supplemental sales schedule that you need to use to figure the capital gain and ordinary income from the disposition. i hope this was a total disposition because if not things become more complicated
1. TT autogenerated another 8949 for the sale marking it as a transaction NOT reported on a 1099-B. It obviously is reported there. How do I get rid of this 8949? Deleting it does not work? I can't change the designation of F(not reported on1099B) to E(reported on 1099B w/o cost basis).
evidently, you entered the entire 1099B info for this PTP in the sales section of the K-1. this is a no-no you'll be doubling up since the amount will also be reported from on form 8949 from the 1099-B import
in the 1099-B imported section you change the cost to what was computed in the sales schedule
2. The TT Partner's Share of Income Credits etc (K-1) Section C shows this as a non-passive loss for Schedule E. But as an investment for me it is a passive loss. Is Section C right (e.g. it's non-passive)? when you dispose of a passive activity passive flips to non passive
3. The K-1 package tells me to enter a number in Form 4797 Part II line 10 but no entry to that line/form is allowed by TT. Where does that value get pulled from in TT? see below
4. I am also instructed to enter a value on Form 6251 line 2k but likewise I can't enter any info there. Where does that come from? if you are not in AMT ignore it
5. The MLP K-1 has the box checked in Part III line 16 (schedule K-3 attached if checked). TT is marking that an an error, because I have no K-3?? There is no K-3 on TT Premier. I find the K-3 on the IRS site but I have no idea what to do with that and the K-1 package is silent on this (other than the box being checked). Should I leave it checked or uncheck it? ignore the k-3 per IRS revised instructions. it won't be out until much later this year maybe even after 10/15. worse it will not affect your taxes.
now make sure you check the box for final k-1 and use the link to enter the disposition info. you do not enter the 1099B here. that's what will create code F.
the only item reported in the k-1 sales section despite whatever TT posts at the top of this section is the ordinary gain from the sales schedule
for sales proceeds enter only the amount indicated as ordinary income from the sale schedule sometimes referred to as 751 income. cost 0
ordinary income enter the the sales amount.
if done correctly the ordinary income flows to form 4797 line 10
