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S8NpTl
Level 3

K-1 shares redeemed how to calculate gains

I received my Final K-1 where as a limited partner my shares were redeemed by the partnership.

 

Box 19 has my redeem amount which was also reflected in "withdrawals & distributions" in my L section.

 

I understand there some difference between redemption vs sale of shares. For all intents and purposes it seems this was a redemption event. My question here is what should I use for calculating gains when I was prompted to enter after I checked "disposed my interest in the partnership" checkbox?

1 Best answer

Accepted Solutions
MarilynG1
Expert Alumni

K-1 shares redeemed how to calculate gains

Since we are not able to view your return in this forum, click this link for info on Final Distribution from Partnership that may help you.

 

If you have been tracking your Basis, this will be the key to calculating your Gain or Loss.

 

Click this link for more info on How to Upgrade to get Live Support  if you want to connect with someone that can view your return with you. 

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3 Replies
MarilynG1
Expert Alumni

K-1 shares redeemed how to calculate gains

Since we are not able to view your return in this forum, click this link for info on Final Distribution from Partnership that may help you.

 

If you have been tracking your Basis, this will be the key to calculating your Gain or Loss.

 

Click this link for more info on How to Upgrade to get Live Support  if you want to connect with someone that can view your return with you. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
S8NpTl
Level 3

K-1 shares redeemed how to calculate gains

Thank you for the response. A follow-up question if I may:

 

The K-1 has both ordinary business income and rental income. I understand I need to input 2 separate K-1 entries, where the first entry contains everything except box 2, and second entry only box 2. I had done this in the previous years' return no problem.

 

But now this is a final K-1 and I need to checked "disposed of my interest in shares" when entering each of the two entries, and I get prompted to enter the buy/sale-dates, basis, gains, etc. If I leave the second entry blank for all of these TurboTax will give a validation error when checking over my return. However I also understand I should not have double entries, so the gain/loss from my disposing my interest in this partnership is not double-counted. What should I do in this instance?

DavidS127
Expert Alumni

K-1 shares redeemed how to calculate gains

For the second K-1, try to resolve the issue by not checking the box for "Final K-1".

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