Investors & landlords

Gordon3 · ‎April 14, 2023

I used my existing return without starting to amend to try two scenarios.

Approach 1: Try what @nexchap suggested in his original reply (Sunday 4/9/23).
Approach 2: Try what I outlined regarding deleting the hand entered K-1 for SHLX from my return and instead importing a K-1 from a *.txf file.

For both approaches, I simply used TurboTax as if I was still editing my return prior to filing, i.e., I did not start amended return (but later I will note issues with that process as well).

For Approach 1, I have this case, “If you don't have any Ord Gain (Gain subject to recapture....), just enter 0 for everything.”

I opened my 2022 return without starting to amend.
I went to use the interview to update the previously hand entered K-1 for SHLX.
When I got to the “Enter Sale Information” part of the interview for the K-1 I deleted all the entries.
Outcome for Approach 1:
- This does seem to eliminate the double counted capital gains, and does eliminate the Form 8949 with box C checked.
- This also results in an updated schedule D and a revised value on Form 1040 Line 7 that differs by exactly the expected $6,020.
- However I discovered a new issue when comparing results with Approach 2 below.
  - It appears that I failed to enter some data from a 2022 SUPPLEMENTAL INFORMATION sheet that came with the K-1, which I had not previously noticed nor previously mentioned.
- I exited TurboTax without saving the file.

For Approach 2

I opened my 2022 return without starting to amend.
I deleted the previously hand entered K-1 for SHLX.
I imported a K-1 for SHLX from a *.txf file.
Outcome for Approach 2:
- This does seem to eliminate the double counted capital gains, and does eliminate the Form 8949 with box C checked.
- This also results in an updated schedule D and a revised value on Form 1040 Line 7 that differs by exactly the expected $6,020.
- Form 1040 Line 8 also changed to $0.
  - For both the originally hand entered K-1 and the case after trying approach 1 the value on Form 1040 Line 8 had indicated a loss of $494.
  - The import picked up items from a 2022 SUPPLEMENTAL INFORMATION sheet that came with the K-1 that I had not previously hand entered.
- I exited TurboTax without saving the file.

While I would get a slightly larger Federal refund if I used Approach 1, I think Approach 2 is more accurate.

But now things get much worse when I try to amend my return.

I started TurboTax.
I selected Amend a Filed Return. (I can start from current file or backup from 3/20/23 and get same results).
1. I got to a screen that outlines 3 steps (Get ready to amend, Start amending, Finish up and file).
2. The top of this screen refund monitor shows the Federal Tax Due and AL Refund amounts consistent with my prior filing.
I clicked continue and got to a screen that asks, “Did you already file your return?”
1. I selected “Yes, I’ve already filed my return.”
2. The same screen then asks me to tell a little more about the situation.
3. I selected “I need to amend my 2022 return” and clicked continue.
The next screen asks, “What do you need to change on your return?”
1. The Federal Tax Due and AL Tax Due numbers both changed to red, non-zero numbers.
2. There is a link on this page that asks, “Why did the refund monitor just change to $0?”
  1. But as I noted, my numbers changed to red, non-zero numbers and the numbers do not seem to make sense.
3. I then get to a screen that indicates, “What do you need to change on your return?
  1. I clicked the update butt next to “Wages & Income”.
4. The next screen asks, “How do you want to enter your income?”
  1. I selected “I’ll choose what I want to work on”.
5. The next screen presents, “Your 2022 Income Summary” with many start or update buttons.
  1. I chose to update “Schedules K-1, Q”.
6. I delete the previously hand entered K-1, then the refund monitor numbers to change to $0.
  1. This refund monitors do not make sense.
  2. This is repeatable.
  3. I installed TurbTax on another machine and produced the same results.