turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

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

userOne
Returning Member

Report sale of publicly traded partnership after importing data from brokerage and receiving K-1 form 1065 to avoid double reporting of gain or loss

Where in the step by step interview process do I make adjustments for the difference between the brokerage basis for the PTP units and the basis reported on the K-1 sales schedule? Simply entering the sale information and the partnership basis in the PTP in the interview process results in a double taxation. Do I delete the brokerage transactions for the PTP or do I make adjustments for the amounts reported in the PTP interview process for entering sales info. Do I adjust the sale price to be equal to the basis reported by the brokerage and then increase or decrease the Partnership basis to reflect the actual basis?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

4 Replies

Report sale of publicly traded partnership after importing data from brokerage and receiving K-1 form 1065 to avoid double reporting of gain or loss

@userOne  To keep the K-1 interview from  messing up your return, on the Sales screen enter the Ordinary Gain on the appropriate line (you may have different numbers for Regular vs AMT), enter its inverse on the cost basis line (e.g., if Ord Gain is $100, cost basis is -100), and put 0 for Sales Price.  Now the K-1 won't create any new 1099-B entries.

 

For your cost basis, you'll adjust the value your broker provided on the 1099-B.  You'll be given the opportunity to make those changes in the interview, or you can just do it directly in 'forms' mode.

**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!

Report sale of publicly traded partnership after importing data from brokerage and receiving K-1 form 1065 to avoid double reporting of gain or loss

i do it a little differently but same result. i enter the ordinary income as the sales price and then the same amount for the ordinary income. 

userOne
Returning Member

Report sale of publicly traded partnership after importing data from brokerage and receiving K-1 form 1065 to avoid double reporting of gain or loss

I only need to report the short term (all units held less than one year) investment gain created by the cumulative adjustments to basis (reduced basis) reported on the sales schedule. The short-term investment gain reported from the sale of the PTP on the 1099B is correct except for this cumulative adjustment to basis.

RobertB4444
Expert Alumni

Report sale of publicly traded partnership after importing data from brokerage and receiving K-1 form 1065 to avoid double reporting of gain or loss

After you enter your 1099-B you will be asked if you need to adjust the basis on any of the transactions.  Just say yes and then adjust it so that it is correct.  Since you're adjusting it so that you can pay more in taxes you won't really need to worry about it after that.

 

@userOne 

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

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies