Business & farm

@Sue45 Does your K-1 entries include straddle income (section 1256 contracts)?  This is typically on line 11C.  If so, straddle income is taxed as 40% short term cap gain, and 60% long term cap gain.  But items reported on the K-1 itself are different than what you report for the sale of a partnership:  a) your personal gain/loss on the sale of your partnership interest is reported on 1099-B (and is 100% long-term), but b) anything reported in the K-1 entries themselves (like a straddle) is your share of income/deductions that the partnership is passing to you, and which you pass directly onto your return.