topic Sale of MLP- Cost Basis in Business & farm

Sale of MLP- Cost Basis

anza — Fri, 13 Sep 2019 18:25:17 GMT

I was hoping you could tell me how to figure out the cost basis from the sale of MLPs in 2018? I sold all my shares and understand that I have to adjust the cost basis on Form 1099-B to the corrected basis. Is this information provided on the Sales Schedule I received with my K1? If so, how would I use the different numbers to arrive at an adjusted basis?

Also, I sold all the shares in one MLP this year but on two different dates. When I figure out the correct cost basis could I proportion it out over the two sales? I would divide the cost basis by the total shares I owned and then apply that cost per share to each sale. Would this be correct?

Thanks for all the help.

Re: Sale of MLP- Cost Basis

Anonymous_ — Fri, 13 Sep 2019 18:52:16 GMT

Read through the following thread and see if you have any further questions after doing so.

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale-of-mlp-shares-in-turbo-tax-i-sold-all-shares/00/776624

Re: Sale of MLP- Cost Basis

Anonymous — Fri, 13 Sep 2019 20:00:08 GMT

if applicable you'll get a supplemental schedule showing how to compute your gain.

there will be a column which you need to fill in for the sales price (the same as on the 1099-B

the next column should be your purchase price which you need to fill in ( should be the same as the cost on the 1099-B

the next column should be adjustment to basis

the next column which you need to compute is total gain or loss

= sales price - purchase price (unadjusted cost basis) - adjustment to basis (can be positive or negative

say 50,000 , 30000 , -20000

then 50000 -30000 - (-20000) = 50000 -30000+20000 =40000

proof your cost basis of 30000 was reduced to 10,000 by the negative adjustment to basis leaving a basis of 10,000

sold for 50.000 with basis of 10,000 so gain is 40,000

say 50000, 30000, 20000

then 50000-30000 -20000 =0

proof your cost basis of 30,000 was increased to 50,000 by the positive adjustment to basis giving you a basis of 50,000

sold with basis of 50,000 so gain is 0

however the or gain or loss may consist of two parts

if the next column says ordinary gain then that goes on form 4797 go into the disposition section and enter info for boxes/lines 1-4

on line 5 enter ordinary gain as sales price, line 7 basis of 0, line 9 same as line 5

for 1099-B purposes increase basis by amount on line 5

so if total gain was say 20,000 ordinary gain is 11000 capital gain would be 9000

Re: Sale of MLP- Cost Basis

rwaibob — Wed, 15 Apr 2020 18:35:11 GMT

Need help in completing the input in the K-1 for entering and adjusting cost basis