If it is already reported on your tax return, you do not need to amend to add.
As a shareholder or partner, the K-1 is issued to you to report your portion of income and deductions. The 1099-B transaction will generate either a long term or short term capital gain or loss. The net gain or loss will show on line 7 of your Form 1040 along with a Schedule D and Form 8949.
Another way to verify is to enter the Schedule K-1 to see if the result creates any differences in the refund or tax due. Steps to amend in TurboTax
- At the right upper corner, in the search box , type in K1 and Enter
- Select the 1st choice on the search results - Jump to K1
- Follow prompts
**Mark the post that answers your question by clicking on "Mark as Best Answer"
No, the K-1is not "irrelevant" because you bought and sold the partnership interest ("shares") in the same year.
You have two reasons to report the K-1 on your return:
1. The K-1 reports your share of the partnership's 2020 income/loss and deductions for the period you owned a partnership interest.
2. The K-1 reports information used to calculate your basis in the partnership. You need that information to calculate your gain/loss on the sale of the interest.
The gain/loss is already captured on the 1099-B as I completely disposed of my stock. If I'm understanding correctly in this case I would not need to include the K-1 info since the gain/loss from the sale of this stock is already reporting on the 1099-B. Am I correct? Sorry if it seems like I'm beating a dead horse. I appreciate your input.
You may still need to enter the K-1 to report your share of the partnership's current year income/loss and deductions (Boxes 1 through 20). That is separate from the gain/loss information on the 1099-B.
If your K-1 does not report anything in boxes 1-20, then you don't need to enter it in your tax return.