How to eliminate a schedule D transaction incorrectly reported on line 3?

Forum|Forum|2 months ago
April 14, 2026
1 reply
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I have a short term loss incorrectly reported on Schedule D, line 3. I have no idea how it got to line 3 of schedule D as this loss is from a k-1. The loss also appears (correctly) on line 5 of Schedule D (losses from k-1). As a result my schedule D is double counting this loss. How do I eliminate the loss on line 3? The amount from line 3 is coming from Part I of form 8949 box C. The description of the property is the name of the LP issuing the k-1. I need to eliminate this loss transaction on form 8949 so that it will not go to line 3 of schedule D but I have no idea how to eliminate it. In forms mode, when I go to form 8949 it will not let me delete the transaction. The only time I input the loss was when I entered my k-1 information. TurboTax is treating this like I sold some of my partnership interest which I did not. How do I eliminate the schedule D, line 3 amount?

Mike9241

Level 15

the 8949 is not editable. rather go to the cap asset sale worksheet.

did you import the k-1 info?

Mike9241

MAC18Author

Level 5

How do I go to the cap asset sale worksheet? The only way I see that I can edit schedule D sales is via the 1099 but my entry was input when entering my k-1 numbers.

PatriciaV

Level 15

You can check this using Forms Mode in TurboTax Desktop. It's unlikely the Box 8 loss from Schedule K-1 (1065) would be reported as a Capital Asset Sale unless you disposed of this investment during the year.

Open your return and click the Forms icon in the TurboTax header.
In the list of Forms in My Return on the left, scroll down and look for Form 8949 under Schedule D.
Click the form name to open it in the large window.
If the error from Schedule D Line 3 appears on this form, right click the description and click Data Source.
Choose the forms listed in the popup as possible sources - Cap Asset Sales is one. Note that Schedule K-1 can be a source if the partnership interest was disposed of during the year. Review the other sources to rule out other transactions.
Cap Asset Sales (1) has a Quick Entry table that can be edited (blue font in yellow box). You cannot change any entries in black. Overrides will invalidate your return from e-filing.
If you are able to identify the entry and resolve the issue, click Step-by-Step in the header to return to the main screens.