Final K1 and 1099-B entry

[icefyre123]

Hello everyone,

I had vested RSU units in a partnership and I sold them all off this year.  I received a 1099-B from

my broker as well as a K-1. The 1099-B doesn't have cost basis information and they put it in "Noncovered Securities with Undetermined Holding Period".  

This is where the strangeness starts.  My broker has multiple transactions on the 1099-B  (even though there were only two sales during the year). It looks to me like they broke it down by lots in a FIFO fashion with the proceeds shown for each lot, in total the add up to all the units sold, which is all of them.  Since the units were in a DRIP there are quite a few lots for each time the dividends were reinvested and additional units were purchased.

The K-1 shows two transactions in the Sales Schedule which total to the same number of units. However, it also has an initial purchase price. When I add up the relevant purchase prices for the lots listed in the broker 1099-B the amount was less than the amount listed in the k-1. However, when I do an average share price across all units and total them, the total reconciles. At least with the first sale, the second sale is off by a little. It makes me think that the k-1 calculations are not using FIFO but are using average cost. 

I am not sure if I just need to remove all the imported transactions from the 1099-B and just the information from the K-1 (two transactions) with the cost basis and adjustments or if this will flag with the IRS because the 1099-B breaks down the transactions more granularly. 

I am trying to figure out how to accurately enter the  1099-B information for this final k-1 and the k-1 forms correctly in turbotax. I've attached the relevant screenshots from the forms.  If anyone could help, I would be eternally grateful because I've been stuck on this for days!

K1:

1099-B info:

k-1 sales schedule

[MarilynG1]

No, it's perfectly acceptable to enter two 1099-B transactions (covered, non-covered) summarizing the info. Check the box 'cost basis is missing or incorrect' and enter the correct basis calculated from your K-1 worksheet. 

Enter 0's for the sale when entering your K-1, as you're reporting it as capital gains on the 1099-B, and don't want to be double-taxed.

Here's more discussion on Final K-1 Sale and 1099-B and How to Report Sale of PTP in TurboTax.

@icefyre123 

[icefyre123]

Thank you for your reply!

Would you be able to help me figure out how to fill out this part of the form? You mentioned to out in a Sale price of 0, what about the other parts?

for the 1099-B I added in the correct dates for purchase and then I took the K-1 adjusted cost basis and added the ordinary income to that figure and then divided this across various transactions.  Is that accurate?

The idea being the ordinary income will be taxed as part of this K-1 interview and the capital gains will be taxed as part of the 1099-B?