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K-1 $0 capital gain not showing up in 8949

I received multiple Final K-1s through my deposition of these partnerships as a limited partner.

 

None-zero gain/loss (long term) was realized from K-1 X, and $0 gain/loss (short term) was realized from K-1 Y (basis = sale price). I also have short term transactions from an unrelated 1099-B Z.

 

When I generated the file forms, I see that my 8949 part I (short-term) has the transactions from 1099-B Z, but not my $0-gain transaction from K-1 Y. I do see the long term transaction from my K-1 X in part II (long-term). Form 8949 does state if you have more than one type of Box A, B, or C you must include a separate 8949 to record transactions of each type.

 

My K-1 Y would be a short term transaction not reported on Form 1099-B, so given I also have 1099-B I technically should have another 8949 entry to record K-1 Y. But TurboTax is not doing this. If I had to guess it may be that there is no gain/loss ($0) realized. Because the long-term K-1 X was recorded just fine (albeit it had a non-zero gain). Should I try to manually attach another 8949 to record the $0 proceed from K-1 Y (assuming this is possible in TT)? Or should I just leave it be, given that there's no gain/losses? 

 

In my schedule K-1 worksheet for K-1 Y I can see all the deposition info entered (acquire date, sale date, sale price, basis), same as K-1 X, so I'm puzzled as to why only Y is omitted in 8949.

 

UPDATE: I just tried to mess around with K-1 Y by giving it a none-zero gain/loss and a separate 8949 was generated! I also modified K-1 X so would have a net 0 gain and it also disappeared from 8949. I know $0 gain/loss is not very common in stocks and such, but is it correct that they would not be entered into 8949? So is this a bug? I do not think a transaction result in $0 gain/loss should be omitted?

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1 Reply
jtax
Level 10

K-1 $0 capital gain not showing up in 8949

I too would rather see a $0 gain/loss reported. However, they may be thinking the that 8948 instructions required reporting "gain" or "loss" and if it is zero there is no gain and there is no loss. That is a possible interpretation. See page 2 of https://www.irs.gov/pub/irs-prior/i8949--2019.pdf "Report short-term gains and losses on Part I. Report long-term gains and losses on Part II." ...

 

on the other hand it goes on and says "Enter all sales and exchanges of capital assets, including stocks, bonds, and real estate (if not reported on line 1a or 8a of Schedule D or on Form 4684, 4797, 6252, 6781, or 8824). "

 

All sales not just gains. Oh, doesn't the K-1 gain show up on 4797? That could explain it.

 

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