You would want to report Complete disposition at the screen Describe Partnership Disposal if you are carrying passive losses related to the activity.
If you disposed of your entire interest in a passive activity or a former passive activity to an unrelated person in a fully taxable transaction during the tax year, your losses allocable to the activity for the year are not limited by the passive loss rules and any passive loss carryovers are allowed in full. A fully taxable transaction is a transaction in which you recognize all of your realized gain or loss.
The entries would be:
- At the screen Describe the Partnership, you report Disposed of a portion of my interest....,
- At the screen Describe Partnership Disposal, you report Complete Disposition,
- At the screen Tell Us About Your Sale you reported Sold Partnership Interest,
Since the sale is reported within the K-1 screens, you would not report the sale on IRS Form 1099-B Proceeds.
Make sure that the sale is not reported twice. Review the sale of the investment reported on IRS Form 8949 Sales and Other Dispositions of Capital Assets and IRS Form 1040 Schedule D Capital Gains and Losses.
You are able to view the entries at Tax Tools / Print Center / Print, save or preview this year's return.
[Edited 4/4/2021 2:45 PM PST]
@Winter8061
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