Hi nextchap,
Thank you so much for the quick response. I read through the discussion link and it is very helpful. I just want to confirm that I got this correct. Below is my understanding, am I doing this the right way? I am gonna use some dummy numbers to keep it easy for me to follow.
On my K1 form: I have value in the following sections
Part II section L
Beginning capital account: $5,000
Current year net income(loss): $2,000
Withdrawals and distributions: $7,000
Part III
11 Other income (loss): $1,800
13 Other deductions: $200
I don't have any ordinary income on K1. When you say force Cap Gain to 0, do you mean the value I have in "Current year net income" and "11 Other income"? Can I just put 0 in all these fields, so they are showing up as 0?
In my 1099-B form, it includes the following info
Quantity sold: 300
Date solde: 3/10/3021
Proceeds/Reported to IRS (box 1d): $7,500
Cost basis: N/A
In Turbo Tax, when completing the 1099-B form, I entered the transaction date and selected whether it is long term or short term, then I entered the following info
- Proceeds: entered $7,500 (from my 1099-B form)
- Cost basis: entered $7,000, which is the value I found on my Sales Schedule (came with the K1 form and it says form 8949 at the bottom) Column 6 "Cost basis" $7,000. In the instruction, it says that Column 6 = Column 4 (Purchases Price/initial Basis amount) + Column 5 (cumulative adjustments to basis). Is this what I should use as the cost basis?
Am I doing this right? Seems strange that with the adjusted cost basis, the total gain is now $500 vs. what's listed on the K1 which is $1,800 or $2,000.
Thank you in advance and look forward to your response!! Much appreciated!! This is way to complex.....
