Investors & landlords

It depends.  If you have the sale of the partnership already accounted for and the income from the K-1 for the year then you have reported both parts of your K-1 (income and sale).

Question: And what does " If total disposition " mean?  Do you mean if all the shares were sold last year?  

On the Transaction Schedule Page, End of Year Shares is zero so I assume that means all the shares were sold.

• Yes.  This would mean that you no longer have any investment, and you have total disposed of this activity.

The K-1 does report the income for the year and the sale is a separate entry.  Use your K-1 to enter your investment sale with the information you indicated (posted below) and be sure to use the information provided by our awesome Tax Champ @Mike9241 to calculate your cost basis (added again below for your convenience).

• SHARES SOLD,    SALE DATE,   PURCHASE PRICE/INITIAL BASIS AMOUNT, 

  CUMULATIVE ADJUSTMENTS TO BASIS,   COST BASIS

The correct tax basis is:

• What you paid originally, should be the same as what is on 8949,
• Then there is a column on the sales schedule that says "cumulative adjustment to basis". If it’s positive add it to the original cost.
• If it’s negative subtract the amount.  
• Finally, add the amount of ordinary income reported above.
• The result is your corrected tax basis for Form 8949.