topic Form 8949 shows incorrect basis for sale not reported on 1099-B in Get your taxes done using TurboTax

Form 8949 shows incorrect basis for sale not reported on 1099-B

CirrusHuet — Thu, 25 Mar 2021 20:31:45 GMT

I redeemed my interest in a limited partnership directly with the LP itself, and received a K-1 from the partnership, but no 1099-B from the broker. In TurboTax, I completed the K-1 input pages, noting that I disposed of my interest. I entered the proceeds from the sale and the partnership basis. The next page in the K-1 section correctly showed the difference between the proceeds and basis. However, while reviewing the completed forms prior to filing, I noticed that Form 8949 Part II (with Box F checked) shows the proceeds and the basis as the exact same amount. It does not correctly show the basis that I entered earlier. What can I do to get that basis updated?

Re: Form 8949 shows incorrect basis for sale not reported on 1099-B

CirrusHuet — Sat, 27 Mar 2021 14:11:15 GMT

Follow up: I tried clearing browser data, then deleting the K-1 and re-entering it. No change.

Re: Form 8949 shows incorrect basis for sale not reported on 1099-B

fanfare — Sat, 27 Mar 2021 14:49:09 GMT

Your K-1 gain or loss should flow directly to Schedule D.

Try deleting that 1099-B. It is unnecessary.

Re: Form 8949 shows incorrect basis for sale not reported on 1099-B

CirrusHuet — Sun, 28 Mar 2021 12:57:29 GMT

Thank you for the reply. However, I did not receive a 1099-B for this sale, so I've only entered the info from the K-1.

Re: Form 8949 shows incorrect basis for sale not reported on 1099-B

CirrusHuet — Sun, 28 Mar 2021 17:32:12 GMT

Workaround: I unchecked the"I disposed of all or a portion of this partnership" check box in the K-1 portion of TurboTax and simply entered the sale in among the stock sales, as an "Other" type of transaction. Then the proceeds and basis numbers flowed through to form 8949 correctly.

Re: Form 8949 shows incorrect basis for sale not reported on 1099-B

JNRa — Sat, 17 Apr 2021 16:28:06 GMT

I was astonished to find someone else with this exact problem (not to mention a solution). It would be nice if you could just edit directly on the Form 8949 that Turbo Tax generates, but I was not able to. Anyway, I very much appreciate you figuring out the workaround. It was driving me crazy and of course I'm no accountant, so I didn't know if TurboTax was actually right in denying me my loss. Thanks.

Re: Form 8949 shows incorrect basis for sale not reported on 1099-B

JNRa — Sat, 17 Apr 2021 16:32:17 GMT

I had the exact same problem. The suggested workaround produced the expected result and seems to be an intuitively right approach. It appears to me that this is something TurboTax needs to fix.

Re: Form 8949 shows incorrect basis for sale not reported on 1099-B

fanfare — Thu, 22 Apr 2021 20:24:25 GMT

@JNRa

Your K-1 gain or loss should flow directly to Schedule D.

Form 8949 is not needed.

If TurboTax won't do that, then I guess you need a workaround.

better tax prep software.