I'll repeat my instructions because your entries are wrong and tell you what the numbers should be
line 5 - sales price 12578 from column 7
line 7 - basis zero
line 9 - ordinary income 12578
the other lines in the regular tax column should all be zero
you can't report the 1099-B info here. you'll get a mismatch notice from the iRS and are probably double counting the gain if you also reported the sale on form 8949/schedule D
for schedule D your tax basis is 4691 column 6 + 12578 column 7
you can contact Sinclair's (DINO) investor relations. they should have filed form 8937 with the IRS providing a method that owners of Holly can use for reporting the merger
22308 seems high. you got $4026 in cash ($4/share of Holly) + 317 shares of DINO (.315 for each share of Holly if i understand the merger terms correctly.
so subtracting the $4026 from the $22308 leaves 18282 divided by 317 means DINO average of high and low on the date of the merger should have been 57.67. the merger occurred on 12/1 when DINO was trading at about $53.585 per share so I have a different figure for the sales price which amounts to about $1000 difference.
however perhaps it goes like this
you paid 28794 originally for Holly, Fideilty 1099 is reporting cost of 27379 so a difference of 1415 that may get added to DINO tax basis so 317 * 53.585 (high/low average on merger date but other methods are also valid)= 16986+1415=18401 (what's fidelity showing as shares and basis for DINO)
18401 +cash of 4026 = 22427 that comes close to the 22308 Fideltiy is using for sales price.
MLP and PTP reporting k-1 and 8949/1099-B
Enter the k-1 info
Check the PTP box
If total disposition proceed as follows:
Check final K-1 (s/b marked on actual k-1)
Check sold or otherwise disposed of entire interest
On the k-1 disposition section for sales price use the ordinary income (sometimes you’ll see a column with the “751” or the words “Gain subject to recapture as ordinary income” or similar wording. This info comes from the supplemental sales schedule that should have been provided. Its also now on the k-1 box 20AB - no 20AB, no ordinary income column then then sales price is zero. The numbers I’m using represent the line numbers in forms mode (desktop only)
- Sales Price = line 20AB (1065 k1)
- Selling expenses = 0
- Basis = 0 (zero – nothing else)
- Gain is computed and should be same as the sales price.
- Ordinary gain = enter the same amount as the sales price
This amount flows to form 4797 line 10 and is taxed as ordinary income. This step is necessary, so any suspended passive losses are now allowed assuming complete disposition.
10,11,12 should be blank/ZERO
Many do not understand the above. The 1099-B reporting is not entered in the above section. Doing so will report the sale twice once here. Once through the 1099-B entry. The above is only for purposes of entering the ordinary income upon disposition. NOTHING ELSE.
Now for the 8949/1099-B Capital gain/loss reporting
The broker’s form is probably coded as B or E – sales proceeds but not cost basis reported to the IRS. This is because the broker does not track the tax basis. It used what you paid originally which is not correct or it was adjusted due to a merger or acquisition.
The correct tax basis is (note that your sales schedule may have a column that reports the adjusted/average tax/cost basis excluding the ordinary income which must be added):
What’s on the sales schedule as purchase price/initial tax basis (usually column 4). it may differ from what you paid originally because of a merger or acquisition. Some of your original cost is allocated to the new securities received, if any.
Then there is a column on the sales schedule that says cumulative adjustments to basis. If it’s positive add it to the cost shown. If it’s negative subtract the amount.
Finally add the amount of ordinary income reported above, if any.
The result is your corrected cost/tax basis for form 8949 – the capital gain/loss portion
