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MLP K-1 Long Term Sale - How Do I Enter K-1 and 1099-B???
I purchases shares in a MLP back in 2011, not realizing what I was getting into at tax time. The purchase and distributions, which were reinvested. Distributions stopped several years ago. I sold ALL shares on 11/22/2021 and residual shares sold on 11/24/2021 for a capital loss.
I downloaded the Turbo Tax package from the MLP and imported it in TurboTax Premier 2021. I have been able to file the taxes in Turbo Tax each year, but selling/liquidating all the shares is much more complicated. Even though I took a large loss (large for me), TurboTax shows I owe a substantial amount in Federal taxes.
This is the first and only time I sold shares, so I have never dealt with the MLP Sale Schedule and corresponding 1099-B resulting from the sale.
Below is an example of my Sale Schedule and 1099-B information.
Below is the information that I have entered:
- Choose the type of Partner: Limited Partner or Other LLC Member
- Choose the Type of Partner, Both of Us are a: Domestic Partner
- Enter the Percentage of Your Share: Percentages entered from of K-1 Section J (All Ending fields 0%)
- Enter Your Liability Share: Amounts entered from K-1 Section K (All Ending fields $0)
- Enter Capital Account Information: Amounts entered from K-1 Section L (Ending capital account $0)
- Describe Partnership:
--- This is a publicly traded partnership. (checked box)
--- This partnership ended in 2021. (checked box)
- Describe Partnership Disposal: Complete disposition
- Tell Us About Your Sale: What type of disposition was this? - Sold Partnership Interest
- Enter Sales Dates
---Purchase Date: 09/08/2011
--- Sale Date: 11/22/2021 (I used this date since this was when my sale order was executed. 11/24/2022 is when the residual shares were sold).
Enter Sale Information: I am not sure what to enter into these fields.
Regular Gain or Loss | AMT Gain or Loss |
Sale Price: __________ | |
Selling Expense: __________ | |
Partnership Basis: __________ | Partnership Basis: __________ |
Ordinary Gain: __________ | Ordinary Gain: __________ |
1250 Gain: __________ | 1250 Gain: __________ |
Describe the Partnership: All of my investment in this activity is at risk.
Any help that can be provided would be greatly appreciated! Thank you!