DaveF1006
Employee Tax Expert

Business & farm

Yes, those losses must be recaptured on a sale of a Master limited partnership. The amount of the gain or loss recognized is the difference between the amount realized and the partner's adjusted tax basis in his partnership interest. 

 

If the losses that are recaptured exceed your basis, then it will reduce your income. It also appears that Turbo Tax is reporting these from your prior tax returns.

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