How to file a K-1 correctly if Robinhood is already reporting the sale of shares for which I also got a K1?

[cchu01]

@nexchapThanks for all your helps and really appreciated.

[chiguy2016]

Okay, so in Turbotax how do you break up a sale such as this into two lots when it is reported as a single lot on a 1099?

For instance, I have a single sale which is reported on a 1099 as 100% long-term, but due to the unifying bases of partnerships rule 90% is LT and 10% is ST, so I have to create a ST entry to the contrary of my 1099.  I don't see a way to add a sale within that 1099, while adding it outside the 1099 would mean I would have to remove a portion of the proceeds from the 1099, creating a mismatch in numbers for the IRS.

Thanks.

[Mike9241]

something is wrong. the brokerage where you bought the shares reports the purchase and sales dates to the partnership. Based on those dates it determined that 90% of shares were held long-term and 10% were held short term. That's what the 1099-B should show 10% as code B in the short-term section and 90% as code D in the long-term section.    sometimes a brokerage will also provide you with an unofficial "1099" report by security.   look at the 1099 what dates, purchase and sale, are being used for the lots.  codes B and D merely tell you that proceeds but not tax basis were reported to the IRS. B for short-term and D for long-term it is the brokerage's responsibility to properly report to the IRS based on holding period so what code is the 1099 using for the lots. if in fact all the shares were held long-term you would need to contact the partnership for a corrected sales schedule. it probably won't change anything and if the partnership has bad dates, rather then wait for a corrected sales schedule which the IRS does not get report all as long-term.

if 90/10 holdings are correct split the proceeds and tax basis 90/10 and use code T for both

from 8949 instructions

    You received a Form 1099-B (or substitute
statement) and the type of gain (or loss)
shown in box 2 is incorrect
use code T
Report the transaction on the correct part of Form 8949,
and enter -0- in column (g) on that part of the form if there
are no adjustments needed for the transaction.

[nexchap]

@chiguy2016 When you sell you tell the brokerage what lots to use.  That's how they categorize it as short or long term.  With PTPs, given the unified basis requirements, you need to tell the brokerage to sell proportionately from all lots: that way your 1099 and your sales schedule will match up.

Given that you didn't do that this time, you'll have to use code T as mentioned in the previous reply to change your 1099 and report the short/long split.