K-1 other income from USO reported 11C

[winterkill]

I have tried to find the answer on my own and seems like the general consensus is that line 11C on schedule K-1 other income from USO has claimed a gain of $1243.00 for my share of the partnership and that I am supposed to enter that to an adjusted cost basis on IRS form 8949. I've searched and turbo tax says that they handle the form 8949 and I need to do nothing. I watched my tax owed go up by almost $200 after inputing the information on the K-1. I'm not a tax proffesional and depend on turbo tax to hep me all along the way.

If what I've described is the correct way to offset these unrealized gains I'm hoping someone can help me out step by step on how to enter them on turbo tax. 

Thanks in advance for your help. 

[Rick19744]

You need to understand how partnership K-1's work:

• The partnership entity is not subject to tax
• All income, loss, gains, etc. pass through to the partners
• You, the partner, input all the information from the K-1 into TT and TT will handle the rest
• The amount on line 11c of your K-1 is a gain from the entity level.  You will pick this up and report it and "yes" your tax will increase as a result.  This is not an unrealized gain.  This is a realized gain at the partnership level.
• Most partnerships also pass out some distributions to help partners cover the tax.  This may or may not have been done with your partnership.  Regardless, you as a partner will pay the tax.
• As a partner in a partnership, you should be maintaining a basis schedule (tax basis).  This gain that you are reporting will increase your basis.

[Mike9241]

you need a version of Turbotax that can handle partnership K-1. the free version will not.  you are taxed on the income and deductions reported on the k-1 even if you got no cash. you enter the partnership k-1 items in Turbotax K-1.  11c is 1256 contracts the income will carry to form 6781 and from there to schedule D.  you make do entry on 8949 for this item since Turbotax has handled it from you k-1 entries.