I went through the interview to report the sale of a limited partnership. I entered Sale Price 13779, Partnership Basis 0 (can't be negative) and Ordinary Gain 11241. My K-1 Sales Schedule says the gain should appear in form 8949 Column G and in form 4797 line 10. It appears correctly in form 4797. However, the from 8949 shows Proceeds of 13779, cost of 11241 and Gain (column G) of 2538.
Is Turbo Tax putting data in the wrong place?
on the k-1 side the sale info you report is only the ordinary income - the 751 income of 11241
that's the sales price cost is zero ordinary income is the sales price
this flows to form 4797 line 10. evidently you did this correctly
yes, the sales schedule may show a negative basis. this may be due to distributions exceeding your tax basis which would result in capital gain. another possibility there was partnership debt which increased your tax basis. say debt is $2000 which counts towards your tax basis and your capital a/c is a negative $2000. your tax basis is $0. now you sell, the debt goes away which creates $2000 of income
so if you have a negative cost
your overall income is the $13,779 + the negative basis. of which $11241 is ordinary and the rest is capital gain
