How to interpret "Disposed of a portion of my interest in partnership..." when entering data from a K-1

Forum|Forum|1 year ago
March 19, 2025
4 replies
63 views

Our advisor bought and sold units of a publicly-traded partnership within one of our accounts and we subsequently received a K-1.

When following the guidance to enter the K-1 in TT, one of the questions in "Describe the Partnership" is

Check any that apply:

.....

Disposed of a portion of my interests in partnership during 2024.

.....

How do I interpret this? Our advisor bought units in multiple transactions, then sold all of them in multiple transactions. To me, we disposed of ALL of our interests. Is TT asking if we still own any units or do I interpret "... a portion.." to include all?

Very confusing!

Depending if I check this box or not, the TT Step-by-Step follows different paths, so any help is appreciated.

MDRCOAuthor

Level 2

Until I learn otherwise, I chose to mark "Disposed of a portion...".

Continuing through the Step-by-Step dialog, I was then prompted to enter the purchase date and sale date for the units our advisor bought and sold.

How do I handle multiple buy and sell dates? TT does not allow me to enter the transactions this way.

For now, I entered the earliest buy date and the latest sale date, given no way to enter multiple dates.

Anyone have a better way to handle this?

Just like buying stocks, the purchases were made 4 times. Then the sales were made twice. But unlike stocks, the individual "shares" (units in this case?) are not tracked.

Very confusing....

JamesG1

Level 15

This TurboTax Help has just been released and may be helpful.

How do I report the sale of Publicly Traded Partnerships

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MDRCOAuthor

Level 2

Thanks for the link.

Unfortunately, while the linked article explains how to interpret the K-1 form, it does not provide details about how to interpret the question in the step-by-step.

In our case, all of the gains were interest and dividends that were NOT included in the broker's 1099.

So I need to report this income using the K-1 information but the step-by-step guidance remains unclear as I described in the earlier posts.

Still hoping someone can explain how to do this.

Thanks