Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
kathymcleod8880
New Member

I have 1099-B Box E checked. Sold shares of PTP & received sales schedule. Must I calculate adjusted basis or use the $’s on the 1099?

Publicly Traded Partnership .  Sold all units. 

4 Replies
nexchap
Level 8

I have 1099-B Box E checked. Sold shares of PTP & received sales schedule. Must I calculate adjusted basis or use the $’s on the 1099?

The basis on the 1099 won't be correct.  You'll want to calculate it following the instructions on the Sales Schedule, and then enter the calculated value on the 1099.  Here's a link to a post that walks through how to make this work correctly in TT:  https://ttlc.intuit.com/questions/3760966-how-i-report-the-sale-of-mlp-shares-in-turbo-tax-i-sold-al...


**Say "Thanks" by clicking the thumb icon in a post
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
ratings image
kathymcleod8880
New Member

I have 1099-B Box E checked. Sold shares of PTP & received sales schedule. Must I calculate adjusted basis or use the $’s on the 1099?

Basic question on sales schedule.  Purchase Amt: $20000 Adjustment to Basis -($32000)  Is my basis  -$12000
Never could figure out subtraction a negative number
kathymcleod8880
New Member

I have 1099-B Box E checked. Sold shares of PTP & received sales schedule. Must I calculate adjusted basis or use the $’s on the 1099?

Or is it +$52000?
nexchap
Level 8

I have 1099-B Box E checked. Sold shares of PTP & received sales schedule. Must I calculate adjusted basis or use the $’s on the 1099?

Unfortunately, you have an additional problem.

First the math:  your basis would be -12000.

However -- the problem -- your basis is not allowed to go below 0.  The fact that it is now means that, during some year in the past, it hit 0.  In that year, you were supposed to start filing differently.  My suggestion is to get someone qualified to look at your past K-1s to figure out if any past years need to be amended and how it affects your sale, because its not something that can be worked through over the forum.  But in a very complicated nutshell:  

Your basis is the sum of your capital account (Section L) and your nonrecourse loans (Section K).  When this is greater than 0, and your capital account is greater than 0, you file as normal.  This is how PTPs start for everyone.

Over time, your capital account falls.  In the year your capital account falls below 0, but you still have a positive basis (because of those nonrecourse loans), you no longer have capital at risk.  That's a different checkbox in TT, brings in different forms, and brings in different complications upon sale.

Then, in the year your basis actually goes below 0, you have to start paying taxes on the differential to keep it at 0.  Different filing issues.  Different issues at sale.

Sorry I can't be more help on this.
**Say "Thanks" by clicking the thumb icon in a post
**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v