Sellng MLP

[des779]

MLP sale.  Purchase price $32,000.  Sold for $28,000.  K-1 supplemental data - Initial Basis = $32,000.  Cum Adj to Basis = -$92,000. Gain subject to Recapture as ord Income = $73,000.  I entered minus $73,000 and plus $73,000 in the Final sale screen in TT and that flowed to Section A of the K-1.  That secrion showed no Capital Gains nd the $73,000 as Ordinary Gain which was mostly offset by accumulated Lossed.  Finaly the question!  TT advice says to adjust the cost basis I got from Schwab.  Is the New Basis $62,000?  Please, I need specific answer.  Thanks 

[MaryK4]

Your new cost basis for the 1099-B entry in TurboTax is $13,000.  The $73,000 is taxed as ordinary income (offset by your losses) and only the remaining $15,000 is taxed as a capital gain.

Initial Basis: $32,000 minus Adjustment to Basis: -$92,000 = Adjusted Tax Basis (-$60,000):
Sale Price ($28,000) - Adjusted Basis (-$60,000) = $88,000.
Total Gain ($88,000) - Ordinary Income Recapture ($73,000) = $15,000 (Capital Gain Component)
 $28,000 (Sale Price) - $15,000 (Cap Gain) = $13,000. 

[Mike9241]

Your new basis is the $32K- 92K + $73K (the ordinary income recapture), which nets to $13K 

There should be a supplemental sales schedule accompanying the K-1, which you can use to prove this amount.