I have a K-1 from a publicly traded partnership. I sold all my units in this firm in 2020. After entering all the information manually through the interview, I switched to forms and ended up on Form K1P Addl Info 2. Part II of K1P Addl Info 2 contains this note and instructions:
"NOTE: If this is a disposition of a publicly traded partnership (PTP) or a master limited partnership (MLP) that was reported on a Form 1099-B, enter zero for both the sales price and the basis on lines 5 and 7 here and report the sale as normal on Schedule D, checking the appropriate "Reported on 1099-B" Box A or Box B. See Help."
Help says pretty much the same thing. I cannot find any Box A or Box B on the forms for K-1, Schedule D, Form 8949, the imported 1099-B or the Capital g/l adjustment worksheets. The sale of these units was imported on a 1099-B from my brokerage. Can someone point me to Box A and Box B or clarify these instructions for me?
Best,
Bob
This has been a source of confusion for anyone who's used TT for MLPs. This thread was born from that confusion (link corrected): https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale-of-mlp-shares-in-turbo-tax-i-sold-all-shares/00/776624
It will walk you through the mechanics of entering the sale.
Also, since you imported the 1099-B from your broker, the sale is already there (identified with either code B or E). You'll see it in Forms mode looking at the 1099-B worksheet for the particular sale. That 1099-B worksheet is also where you'll correct the cost basis.
This has been a source of confusion for anyone who's used TT for MLPs. This thread was born from that confusion (link corrected): https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale-of-mlp-shares-in-turbo-tax-i-sold-all-shares/00/776624
It will walk you through the mechanics of entering the sale.
Also, since you imported the 1099-B from your broker, the sale is already there (identified with either code B or E). You'll see it in Forms mode looking at the 1099-B worksheet for the particular sale. That 1099-B worksheet is also where you'll correct the cost basis.
@nexchap, this worked although the link provided is broken. I had to search for it, found it, but cannot find it now. Regarding the 1099-B form, I feel the need to expand a bit.
1. Go to the 1099-B worksheet in the forms view of TT. Not sure if TT online version has a forms view.
2. Do not use the Capital Gain (Loss) Adjustments Worksheet for individual transactions.
3. In the main 1099-B worksheet, which should be labeled for your broker, you will see all the 1099-B information imported from your broker in the section entitled "Quick Entry Table."
4. This table has a scroll bar. Scroll down to the transaction for the partnership issuing the subject K-1. There may be more than one sale covered by a single K-1.
5. In the "Cost or Other Basis" column, simply click on the value for that sale and edit the value to the basis provided in the K-1. The new value will flow through to the "Capital Gain (Loss) Adjustments Worksheet" for that particular sale.
Best,
Bob
@nexchap, The email notification contained additional thoughts from you about the complexity of MLPs. Frankly, after the experiences I've had with K-1s, I intend to steer clear of MLPs and PTPs of any sort. Tax reporting for these investments is simply too high maintenance for a non-pro like me. Thanks so much for taking my hand and leading me through this mess.
Best,
Bob
@nexchap i have a similar question
I received K1 for USO. I acquired and sold all the shares in 2020.
I also imported 1099 from my broker.
After going through the interview I see the loss -110 listed twice on 8949.
Do I enter 0 in sales price and 0 in partnership basis on"Enter Sale Information " screen during K1 interview So it does not count the loss twice?
my ordinary gain is 0, so that is why I think I should be setting the basis to 0 per your other thread.
My cumulative adjustment to basis is 0.
@newtok1 Entering 0s into the K-1 interview is probably simplest, since then you don't need to worry about double reporting and eliminating the 1099-B from the broker.