you see column 6 it's negative. this may mean you misreported in prior years. when tax basis goes negative that means net losses exceed your tax basis making them non-deductible or distributions exceeded your tax basis which would result in your needing to report a capital gain in the year it happened. or it could be a combination of losses and distributions that caused this. I'm going to ignore this unless you want to hire a pro to review prior reporting and file amended returns if need
for the k-1
need to indicate final
also need to indicate complete disposal
then you need to use the k-1 link to enter certain disposition information
most should be self-exlanatory
when you get to the sales price only enter the amount in column 7
cost = 0
ordinary income same as column 7
all this will flow to form 4797 line10 and be taxed as ordinary income
on the 1099-B you need to adjust the cost information. it's wrong because brokers do not get any info to enable them to adjust for the partnership activity
your sales price is the $2810
tax basis $3986 what you paid less $5069 what you got in income, losses and distributions plus the $2228 of ordinary income = $1145 resulting in LTCG $1665
total ordinary gain and capital gain (just an FYI) $2228 + $1665 = $3893
this is your sales proceeds $2810 plus basis adj of $5069 (net income and distributions) = $7879
less your original tax basis $3986 ($7879 less $3986 = $3893)
as you can see dealing with a PTP is a pita
what's worse about many PTPs is that the longer you hold them
the larger column 5 becomes and column 7 also increases by about the same amount.
had a client that held a PTP 10 years or so. ordinary losses for that period were about $10K which couldn't be deducted due to the passive loss rules for PTPs. when sold column 7 was $50K so net ordinary income in the year of sale was $40K which made more of social security taxable and had other adverse effects on the return.
