@spoede1026 There's a section of the tax code that deals with "Qualified Business Income" or QBI. You get a lower tax rate on this type of income, and MLPs generate some. So when you enter line 20Z into TT it triggers the interview to ask you about QBI, which happens on a screen like "We need some information about your 199A income". On that screen, there's a box you check for "____ has business income" and a bunch of boxes appear". The first of those boxes is for "Ordinary Business income" and the 5th is for "Ordinary For 4797 gain included above". This is what people mess up:
- Box 1 on your K1, or line 20Z itself, is one source of Ordinary business income which goes into the first box.
- But your Ordinary Gain on the sale (20AB) also goes in that first box, and then is identified again in the 5th box.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
