I was able to follow the K-1 documents provided by Masterworks for most of the questions but was confused how to answer the following questions during the K-1 process in TurboTax Online:
Describe the Partnership (I checked the following):
- This is a publicly traded partnership.
- This partnership ended in 2022. (Is this correct?)
Describe Partnership Disposal:
- Complete disposition (I later chose this -- is this correct?)
- Disposition was not via a sale
- Sold and am receiving payments (I originally chose this but saw questions about mortgages and saw no tax impact after)
What type of disposition was this (after checking "complete disposition" above):
- Sold Partnership Interest (I checked this one since there was a note that said if you are not sure, answer Sold Partnership Interest -- is this correct?)
- Liquidated Partnership Interest
Enter Sale Information (what values to put for each?):
- Regular Gain or Loss (Sale Price, Selling Expense, Partnership Basis, Ordinary Gain, 1250 Gain)
- AMT Gain or Loss (Partnership Basis, Ordinary Gain, 1250 Gain)
