I do not know why TurboTax has not updated how it handles the sale of MLP units. A prior contributor offered a solution which works for me, so here again "
On the MLP (K1) screen, show partnership ended, and that you disposed of your units by a sale. Further on the screen asking for sales and basis, enter zero for basis, enter the ordinary gain or loss in that box, and enter the inverse reported gain amount in the basis box
So an ordinary gain of 240 is entered in the basis box as -240. The end result is that the gain goes on form 4797
AND there is nothing that will duplicate the information on your form 1099 B from your broker that goes on form 8949.
On your entry from your broker statement for the sale of the MLP enter the total sales revenue, and the cost as shown,
and check the box below for incorrect basis. When the correct basis screen comes up enter a basis that will result in the correct capital gain or loss based on your sales worksheet calculations. You may want to provide a supplemental statement to explain this code B adjustment.
Then there is also the issue that the K1 interview assumes that sale took place in one time period, without providing for short term and long term sales. But that is not necessary since the 1099 B will have that information reported as
code B for short and code E for long since neither basis is reported by the MLP to the IRS. So you have to adjust the Code B basis to reflect short term capital gain or loss and ditto on code E.
All of the above has been posted previously by another contributor. I am only repeating it for those who did not read the original. But my question is. WHY IS THIS NOT BUILT INTO THE PROGRAM ITSELF. THIS WORKAROUND HAS EXISTED FOR SO LONG THAT IT IS TIME TURBOTAX MADE IT PART OF THE PROGRAM. !!
