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New Member
posted Jun 6, 2019 3:51:21 AM

How do I calculate basis of partnership interest from a stock trade?

I bought and sold 100 shares of EPD. I have the schedule K-1.

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1 Best answer
Level 15
Jun 6, 2019 3:51:23 AM

Many times the K-1 will show the basis.

It is in very general terms, the cost you paid for the partnership interest, plus the income reported, less the losses taken, when the K-1 was reported. .  

The following IRS publication 541 has much more detail on this. 

https://www.irs.gov/pub/irs-pdf/p541.pdf

6 Replies
Level 15
Jun 6, 2019 3:51:23 AM

Many times the K-1 will show the basis.

It is in very general terms, the cost you paid for the partnership interest, plus the income reported, less the losses taken, when the K-1 was reported. .  

The following IRS publication 541 has much more detail on this. 

https://www.irs.gov/pub/irs-pdf/p541.pdf

New Member
Jun 6, 2019 3:51:24 AM

If I paid $2219 for the shares of EPD. I received $39 in distributions/dividends. My current year increase (decrease) on K-1 section L = -$74. Is my basis of partnership interest = 2106?

Level 15
Jun 6, 2019 3:51:26 AM

Yes, that is also what I came up with

New Member
Jun 6, 2019 3:51:27 AM

I have similar question about calculating the cost basis when the stock was bought and sold in the same year. I see how the cost basis is calculate. But what happens to the cost basis of 2106 the following year? Does anything happen?

Level 15
Jun 6, 2019 3:51:28 AM

If bought and sold in the same year there is no basis in it, as it was sold and nothing exists for the following year.

New Member
Jun 6, 2019 3:51:29 AM

I am confused.  From the question, it seems like this person bought and sold shares of a publicly traded company, which I assume the person would also have a 1099-B.  
Is the answer to this question assuming the person doesn't have a 1099-B?

From another related question at <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3242541-i-have-both-a-1099-b-and-a-schedule-k-for-the-same-sale-which-one-do-i-enter">https://ttlc.intuit.com/questions/3242541-i-have-both-a-1099-b-and-a-schedule-k-for-the-same-sale-which-one-do-i-enter</a>

A turbo tax agent answered that we don't have to calculate basis for schedule K, and only input sales and purchase info into the stock section.  Who is right?