Thank you very much for your detailed answer.
I sold PTP, Energy Transfer LP, after holding for more than 3 years.
Merrill's1099-B lists it under "Cost basis not reported to IRS - Form 8949, (X)",
1d. proceeds: 16,200
1e. cost basis: 5,185
My TurboTax premier downloaded it from Merrill, lists capital gain: 11,015
K1 has
20AB: 5,922
Sales worksheet lists:
4 . Average purchase price/initial basis amount: 5,185
5. Cumulative adjustments to basis: -3,507
6. Average cost basis: 1,678
7. Gain Subject to recapture as ordinary income: 6,141
8. AMT Gain/lost adjustment: -58
10. Cumulative adjustments to basis: -1,505
11. Gain subject to recapture as ordinary income: 4,139
following your instruction,
K1 disposition section:
sales price: 20AB: 5,922
gain: 5,922
ordinary gain: 5,922
In Business Items, Sale of Business Property: 5,162
Then go back to 1099-B,
The initial basis (5,185) + cumulative adjustments (-3,507) = average cost basis (1,678)
Add the ordinary income (5,922 (?)) = 7,600
So the 1099-B cost is 7,600
This results a capital gain of 8,600
So in total, I have a capital gain of 8,600 + business gain of 5,162 = 13,762 taxable.
The actual gain I received is only 11,015.
Is there anything wrong?
The extra gain of 3,507 comes from cumulative adjustments to Basis in K1 sales worksheet. Do you know what it is?
I am using desktop TurboTax premier WindPerRelease 024.000.0350
Do not see the line numbers as you referred to.
Thank you very much!
