Investors & landlords

Hi Mike9241,

Thank you so much for your prompt and informative reply.

TC Pipelines was indeed held through a broker, but on the Consolidated 1099 statement that they produced, there is no 1099-B statement regarding this exchange/sale. I also received a Form 8949 and Schedule D statement from the broker, and there is no indication of this exchange/sale.

TC Pipelines did provide a Final K-1 and a 2021 Sales Schedule as you mentioned. When entering K-1 information on TurboTax (TT), regarding “Describe Partnership Disposal”, I want to enter “Complete Disposition”, but the “Learn More” section indicates “If a passive activity or former passive activity is involved in a like-kind exchange, the activity should NOT be considered fully disposed of and current year losses and passive carryovers are still subject to the passive activity loss rules.” As this was a LIKE-KIND EXCHANGE of shares involving 2 passive activities, I thought “Complete Disposition” would not be the correct choice. Another choice offered on TT is “Disposition was not via a sale”, which didn’t seem correct either. I chose “No entry”. You are telling me to enter “Complete Disposition”, which is fine.

I don’t see on TT where to enter that the K-1 is Final, but I will try to find that.

When you said “in the k-1 disposition info you list sales price only as an the 751 income cost as 0 ordinary income as sales price”, I don’t understand exactly what you are telling me. I apologize for my ignorance.

As there is no 1099-B, when you said “on the 1099-B which should indicate cost basis not reported to IRS you'll need to change that to the computed basis”,  I will try to enter that if I encounter a place to do so.

On the K-1, there is indeed a line 20Z1 entry for Section 199A Publicly Traded Partnership Income with one number indicated, but TT wants much more information than this single entry provides. Please see screen shot below:

Thank you so much for your patience and understanding. Any detailed instruction that you can provide is greatly appreciated.