Get your taxes done using TurboTax

@Stumas11 

In most cases, reporting the sale is pretty straightforward.  But it does introduce a whole bunch of tax issues that TT “handles”, but doesn’t really explain or simplify.  And, unfortunately, TT makes it easy to enter things incorrectly, leading to tax errors.  So if this is your one and only interaction with MLPs, you'll have to decide if its worth the hassle to do-it-yourself.  But if you’re going to do MLPs / partnerships again, or are comfortable dealing with taxation, it’s very doable with the help available on the forum.

You’ll need

• Your original purchase info and the ‘Sales Schedule’ that will come with your 2022 K-1
• The correct carryover losses.  You get to report these when you sell, but to do that you’ve got to get the right number into TT.  Ideally, in the first year you used TT for the K-1, you’d have entered the suspended losses from your wife’s return into TT when it asked about prior carryover losses.  If not, you can add them in during the 2022 interview, but that leaves open the possibility that something in a prior year’s return was incorrect.
• An ending capital account balance (section L of your last K-1) that’s above $0 (to make sure you’re still in the ‘simple’ category).  If your capital balance has dropped below $0, you may not have basis, or investment at risk, which definitely makes this complicated and expert help is probably called for.

If you’ve been using Deluxe so far, and entering all your K-1 info there, then it will also work for the sale.

Hope that helps.