@mlpinvestor There's two things going on with a K-1:
- The partnership is passing all their taxable events on to the partnership, so you can report them to the IRS and pay tax. You do this in TT by entering all the K-1 info and letting TT take care of reporting it in the right spot.
- You're getting the info you need to adjust basis, which only becomes relevant from a tax standpoint when it either reaches 0 or you sell.
When you sell, the partnership is giving you the overall summary of all the basis adjustments (including anything reported on the current K-1) on the Sales Schedule. Enter all the K-1 info as normal. Then use the Sales Schedule to figure basis and cap gain.
**Say "Thanks" by clicking the thumb icon in a post
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
