I received both 1099-B and K-1 for the same sale. 1099B cost basis is not available. How do I enter 1099B?

[rshen40]

Since 1099B cost basis is not available, should I only enter  all data in K-1 and ignore 1099B?

[Critter · Accepted solution]

You must enter in the K-1  and  report the sale on the 1099-B using the basis info from the K-1.  Failure to do both will get you an IRS audit letter. 

[rshen40]

1099 box 1d Proceeds $20,296. K-1 box 11 -$478, box L Beginning Capital $23,706, Withdraw & Distribution $23,227 which number should I use for 1099B Cost basis?

[Jquez]

Did you ever find out an answer to this?

[Critter]

Look at your K-1 ... back about 3-4 pages for the sales info worksheets.

[briaom]

Intuit says the sale should only be entered once:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4384570-how-to-handle-schedule-k-1-form-1065-for-a-partnership-sto...>

[Critter]

You do only enter the SALE once ... however you must enter the income from the K-1 as well as the sale.  There is a worksheet in the K-1 paperwork to help you enter the sale correctly on the Sch D & form 4797 if needed.

[briaom]

I understand ... thank you

[TaxCutforMe]

TT Premier actually ask about the SALE of my PLP in the K-1 section.   The cost basis that was reported on my 1099-B, and the adjusted cost basis from the "Sales Schedule" of the K-1 were, of course, significantly different.  When I enter the information from the 1099-B I get a simple Loss (Purchase price - Sales price).  But, the information I enter from the K-1 Sales Sckedule has and adjusted cost basis plus a "Gain Subject to Recapture as Ordinary Income" figure.  The instructions with the K-1 tell me to enter the Cost Basis in Form 8949, Column E and the Gain in Form 4797, Part II, Line 10 and Form 8949, Column G.  THIS QUOTE IS IN THE INSTRUCTIONS WITH THE K-1 :   (Reporting this gain as a NEGATIVE adjustment in Column G of Form 8949 should generally result in the correct capital gain or loss)  
Having said all this - I am still unsure if I report this once or twice.  I have played with TT and if I report it twice, I DO get a different TAX COST.  

[colezy]

Agree.  See the same.  TT mentions only once and recommends the K-1 in the above link.....
"Yes, you should enter the sale information only once. Your best option would be to enter the information only under the Schedule K-1 section. This allows TurboTax to use your historical basis and release any passive losses that may have been carried forward." ….. The sale needs to be reported only once.  This is very common with these interests in the partnerships (K-1 and 1099B).
I personally like to report it only in the K-1 section as my basis information is also there.
IRS is aware of the multiple reporting of these sales and will look for it in the matching program to prevent you from getting a letter from them.
 Answered by TurboTaxMichaelL1 to this question

[mderv]

Is there anywhere in the IRS tax code that states that K1 information is preferred over 1099B for sales of publicly traded partnership interests? In my case, I received both K1 and 1099B for my 2018 sale of partnership units. The 1099B doesn't list any cost basis information, so the K1 is the only record I have that includes those details. It would be nice if there was published IRS guidance that confirms that.

[PickyTax]

I have been round and round with this issue.  Spent 2 hours on the phone with a CPA from TT who said the correct way to enter the partnership sale is to enter the 1099B under stock and use the basis from my original sale (which results in a loss) and then enter again from K-1 using sale amount from partnership minus the k-1 cost basis.  This results in two entries on the 8949 which he assured me was correct indicating one would offset the other.  Then the gain subject to recapture as ordinary income (which is supposed to get entered as a negative amount in column g on form 8949) is listed as a positive number under Form 4797, Part II, line 10.  I'm confused after reading some posts about only entering one place and not sure my calculation is correct.  Anyone have any tips on understanding what is correct.

[PickyTax]

So if I understand correctly, your saying don't enter the 1099B info. at all under that section but enter the sale with the k-1 cost basis under the k-1 section.  Any help is appreciated.

[JohnW222]

@PickyTax

That’s correct.

Understand that, the IRS isn’t looking for your Form 1099-B specifically, even though the payer has electronically filed your 1099-B with them.

Rather, the IRS only needs to verify that there’s an amount equal to or greater than the relevant 1099-B amount reported in certain places on your return where that type of transaction would likely be reported.

[chunkaiw]

If i report it in both places won't i get double taxed? Let's say my profit is USD 1k, then K1 will show +1k and Schedule D will also show +1k and so I pay capital gains on 2k of taxes?