Solved: I received both 1099-B and K-1 for the same sale. 1099B cost basis is not available. How do I enter 1099B?
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Employee Tax Expert

I received both 1099-B and K-1 for the same sale. 1099B cost basis is not available. How do I enter 1099B?

You can add the income reported from your K-1 entry to the cost basis on the 1099-B entry to avoid a double taxation issue. 

 

First, report the form 1099-B transaction like you normally do. When you enter the sale and cost basis information you will see this screen:

 

 

Click on the "I'll enter additional info on my own" option. You will then see a screen where you can add the correct cost basis, where you add the income reported on the K-1 schedule. The difference will show up as an adjustment on your schedule D.

 

 

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Level 3

I received both 1099-B and K-1 for the same sale. 1099B cost basis is not available. How do I enter 1099B?

What about a situation like this where I got this on a 1099-B:

M1.PNG

 

And this on the K-1:

K-1.PNG

 

I'm guessing they round out the number for the K-1s as the others I got are similar. Should I just leave the 1099-Bs/entries on form 8949 as they are or would I delete the two entries in TurboTax and then add one entry with something like:

Box 1c Date Sold: 12/9/2019

Box 1b Date Acquired: Various

Box 1d Sales Proceeds: 3

Box 1e Cost or Other Basis: 3

 

Employee Tax Expert

I received both 1099-B and K-1 for the same sale. 1099B cost basis is not available. How do I enter 1099B?

It appears to be a duplicate entry, but since they both report zero gain, they won't affect your tax. Because the amounts are immaterial, if you have already reported them, I would suggest you leave them alone.

 

Otherwise, just report one of them, the 1099-B would be easier, so go with that one!

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Level 2

I received both 1099-B and K-1 for the same sale. 1099B cost basis is not available. How do I enter 1099B?

@ThomasM125 thanks for the suggestion about entering the corrected cost basis on 1099B:

corrected cost basis = cost basis from 1099B + gain subject to recapture as ordinary income from K-1

 

That results in the negative adjustment in Column G of Form 8949, as suggested in instructions on K-1 for Column 7 (gain subject to recapture as ordinary income):

Column 7: The instructions to Form 8949 are unclear in the determination of capital gain where total gain on the sale of units is partially ordinary gain. Reporting this amount as a negative adjustment in Column G of Form 8949 should generally result in the correct capital gain or loss.

 

What I'm unclear is, I still have two 8949 forms:

  1. 8949 generated based on the 1099B from my broker. This is where the corrected cost basis has been applied.
  2. 8949 generated based on the K-1 sale interview.

Some people suggest that the 1099B sale information from the broker should be deleted. That deletes the first 8949 form.

 

Could you clarify what is the right approach?

  1. Enter the corrected cost basis on 1099B from the broker as negative ordinary income. Keep two 8949.
  2. Remove the sale from 1099B from the broker. Keep 8949 from the sale on K-1.

The two approaches result in different tax refund.

 

Appreciate your help!

Employee Tax Expert

I received both 1099-B and K-1 for the same sale. 1099B cost basis is not available. How do I enter 1099B?

I am assuming that the K-1 gain is duplicated on the form 1099-B reporting. If so, you would need to adjust the cost basis of the sale reported on the 1099-B to reflect a zero gain.  That way, the gain or loss reflected on the K-1 would be the only one appearing on your tax return.

 

I think you may have an issue with ordinary income being reflected on the K-1 form. You can't report ordinary income from a form 1099-B form, it would all be capital gain income.

 

So, if you try to just report the form 1099-B information, it may give you a different result that if you report the same information from a k-1 form.

 

So, if the form 1099-B duplicates the gain reported on the K-1 schedule, report the sale amount on the form 1099-B as stated on the form and adjust the cost basis to reduce the gain to zero. 

 

 

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New Member

I received both 1099-B and K-1 for the same sale. 1099B cost basis is not available. How do I enter 1099B?

Question:

 

I have an individual owned public investment k-1 with a sale showing proceeds $17,945 with basis $11,282 sowing an ordinary income of $5,516 but states to enter on 8949.  The sale on the 1099-B shows same proceed of $17,945 but basis of $21,048, a $3,103 8949 LT loss.

 

Are you saying to use the k-1 data that is supplement for basis vs. the 1099-B reported to IRS or enter in both sales transactions for the same sale?

Anonymous
Not applicable

I received both 1099-B and K-1 for the same sale. 1099B cost basis is not available. How do I enter 1099B?

the broker 1099B does not adjust your original cost for partnership activity.  the partnership provided you with a supplemental schedule that shows your tax basis and if any part of sale that is ordinary gain under section 751.

 

 

so on form 8949 show sales proceeds as $17945. basis as $11282+ $5516 which is the ordinary gain resulting in a capital gain of $1147

on the disposition part of the k-1 worksheet you will show purchase and sales dates based on the 1099B. you will show sale price of $5516 on line 5 and ordinary income of $5516 on line 9

 

also make sure you check off this is a final k-1 so any passive suspended and current losses are allowed. 

New Member

I received both 1099-B and K-1 for the same sale. 1099B cost basis is not available. How do I enter 1099B?

I wasn't sure I would get a response so I am attaching actual info. to confirm your original reply is still correct or adjust, thank you for response!

 

k-1 Supplemental actual

Purchase Price  $17,945, revised purchase basis = 11,282, Box 7 subject to ordinary gain 5,516

 

1099-B

Proceeds 16,260

cost basis  18,075

LT Loss 8949 = -1,815

 

Thank you!

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