JP106
Level 2

ETF liquidation

An ETF I held was liquidated. It was structured as a partnership. I received a form 1065 / Schedule K-1.

The 1065 showed a short term loss (line 😎 of approximately 3% of my investment, and other income (loss) of around 80%.

 

While filling out the TT questions on the Schedule K-1, I do enter my cost basis (remaining 17% approximately I'd guess) and liquidation proceeds.

 

However my broker also included the loss from this liquidation on my 1099-B.

 

So in the end, TT, due to the 1099-B and schedule K-1 data, is trying to count my loss twice. The K-1 loss of about 17% ends up showing up on my schedule D under line 3 (from form 8949 with box C checked), while my 1099 loss was showing on the lines above.

 

I think the right thing to do here is not to show the cost basis and sale price when entering the K-1 data, and just allow my broker 1099's to cover it.

 

I'd appreciate any insight though as I of course want my taxes to be both correct - and not be audited.

 

Thanks!

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