Business & farm

 nexchap I deeply appreciate all the information you have provided given that this is such a complex issue. My K-1 Sale Schedule (SS) has significantly more boxes then other indicated and I believe it actually provides me with the amount I should enter as my Total Adjusted Cost Basis for this sale on my 1099B/SchD. However, just to ensure the stars all aligned, I went through the all the steps you previously outlined in your posting and I did get the same numbers as my SS. However, since no one has previously mentioned that their SS included this information I just want to ensure I was not missing anything. (I’ll provide the figures from my K-1 and calculations below my next question.

Secondly, Due to the complexity of my 1099 Div/INT/B from my broker I had to import this information into TurboTax and unfortunately when Schwab sold all my shares of my MLP they did do in 4 lots; therefore, I just wanted to ensure I can just proportionally adjust each lot’s cost basis so that the sum of all lots equals the Total Adjusted Basis for Capital Gain/Loss Purposes.

My K-1 Sales Schedule shows the following information:

Total Number of Units Sold (Column 1) 204

Purchase Dates (Column 2) K-1 shows: Various

Sale Date (Column 3): 8/5/2020

Sales Proceeds (Column 4): K-1 blank, $2572.34 on 1099-B

Purchase Amount (Column 5):  $8979. 

The below amounts are provided by the Partnership

Cumulative Adjustments to Basis (Column 6):  -$7043

Total Adjusted Basis (Column 7) :  $1936

This amount is calculated by combining your Purchase Amount in Column 5 and your Cumulative Adjustments to Basis in Column 6.

Section 751 Gain (Column 8- Ordinary Income). Form 4797 line 10, Column G : $3893

Total Adjusted Basis for Capital Gain/Loss Purposes (Column 9): $5289

 (Calculated by adding ordinary gain column 8 to adjusted basis column 7).

Percentage Long Term Capital Gain/Loss (Column 10): 100%

Sale proceeds. Long Term Capital Gain/Loss (Column 11). Form 8949 Part II. Long Term Column D. K 1 blank, calculated amount $2572.34

Sale proceeds. Short Term Capital Gain/Loss (Column 12). Form 8949 Part I. *Long Term Column E: K-1 blank, calculated amount 0

Adjusted Basis: Long Term Capital Gain/Loss (Column 13). Form 8949 Part II. Long Term Column E. $5829

Adjusted Basis: Short Term Capital Gain/Loss (Column 14). Form 8949 Part I.  SHORT Term Column E: $0

Alternative Minimum Tax Basis Adjustment (Column 15). Form 6251 line 2K. -$20

AMT ordinary gain is: $3873

To adjust my Cost basis on my 1099B I  followed your example designated “step 2” and did the following:

Total Adjusted basis: Purchase price/Cost- Cumulative Basis Adjustment (8979.45 -7043) = 1936.45 (same information on SS column 7)

Total Gain: Proceeds- Adjusted basis (2572.34-1936.45) = 635.89 (not on SS)

Capital Gain/Loss: Total Gain-Ordinary Gain (635.89 -3893) = -3257.11 (not on SS)

Basis for Capital Gain for SchD: Proceeds- Capital gain/loss (2572.34 – (-3257.11)  = 5829.45 ( This is essentially same as amount on SS column 9 Total adjusted basis  for Capital gain Loss Purposes)  (.64918142 of original cost)

Due to the complexity of my 1099 Div/INT/B from my broker I had to import this information into TurboTax and unfortunately when Schwab sold all my shares of my MLP they did do in 4 lots; therefore, I assume I can just proportionally adjust each lots cost basis so that the sum of all lots equals above Basis, but I just wanted to make certain.

1. 100 Shares Cost 4404,  Proceeds 1260     Adjusted Basis: 2858.99
2. 54 Shares Cost 2366. Proceeds 680          Adjusted Basis: 1535.96
3. 50 shares Cost 2202, Proceeds 630          Adjusted Basis: 1429.50
4. .164 shares Cost 7, Proceeds 2                 Adjusted Basis: 4.55        

(Original Cost: 8979, Proceeds: 2572          Adjusted Basis: 5829.45

Thanks so much