topic Re: Final K-1 Question in Tax law changes

Final K-1 Question

mellynlee1 — Tue, 10 Mar 2026 06:00:05 GMT

We received our Final K-1 for a limited partnership that we had invested money in. When entering the information into TurboTax, I selected "This partnership ended in 2021." The next page asks:

Choose how you disposed of this partnership/LLC.

Do I choose:

- Complete disposition

- Disposition was not via a sale

- Sold and am receiving payments

I am assuming I should choose "Complete disposition"? We already received our final payments for this partnership and will not receive any more.

Re: Final K-1 Question

HiCPA — Wed, 28 Sep 2022 18:49:40 GMT

Hi @mellynlee1 !

If you already received your final payments from the partnership and you have completely dissolved your share in the partnership through a sale, you can select the "complete disposition" option.

The TurboTax screens will then follow up to ask more questions about your sale, including entering in your sale date(s) and sale information.

Here is the IRS instructions for Schedule K-1 for a beneficiary filing form 1040 or 1040-SR for your reference. Link here

Enjoy the rest of your day!

Re: Final K-1 Question

mellynlee — Wed, 28 Sep 2022 19:52:28 GMT

Thank you for your response.

I selected 'Complete Disposition', and TurboTax is requesting more information, as you mentioned.

For 'Purchase Date', what do I put?

- The date the check (of our investment) was received? (or the date the check is written?)

- The date of the letter that confirms receipt of above check?

For 'Sale Date', what do I put?

- The date of the final check that we received?

The following page requests information about Regular Gain/Loss and AMT Gain/Loss.

You provided a link to help with filling out this information. However, when I look at those instructions, they don't make any sense with my K-1. The link you provided is for Schedule K-1 (Form 1041). I have a Schedule K-1 (Form 1065).

Is there something that can help me fill out the information that TurboTax is asking for?

When it asks for 'Sale Price', do I just enter the amount of my final check?

I have no idea what the Selling Expense, Partnership Basis, Ordinary Gain, or 1250 Gain is.

My K-1 has a couple of extra pages of information, namely Long-Term Capital Gain amount, but also has a different amount for Transferred Capital (Total other Increases/Decreases).

There are several Footnotes as well that make no sense to me and I'm not sure what to do with them:

Section 199A, Schedule K-3, and Section 163(J)

They all say "Please consult your tax advisor.", but I don't have one.

Can someone please help me?

Thank you!

Re: Final K-1 Question

Mike9241 — Wed, 28 Sep 2022 20:23:21 GMT

was this a publicly traded partnership where the disposition was reported on 1099-B? if no, ignore.

Re: Final K-1 Question

mellynlee — Wed, 28 Sep 2022 20:48:35 GMT

I did not receive a 1099-B, so I assume it wasn't publicly traded.

We have a Limited Partnership -- we invested $$ to purchase land, which was later sold.

So, are you saying we should ignore all the questions that TurboTax asks?

Put nothing for Purchase Date and Sale Date and the entire page requesting Regular Gain/Loss and AMT Gain/Loss?

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 21:17:16 GMT

The doesn't sound like a publicly traded partnership - as it would have been purchased on a public exchange, and you would have received a 1099-B. You are a limited partner? What date was the purchase? Have you been reporting income/losses each year since purchase on the property on your 1040? These things are important to know to determine your cost basis - which would be purchase price plus gains and additional contributed capital, less losses and distributions.

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 21:18:10 GMT

You will still enter an amount for Purchase Date and Sale Date and the entire page requesting Regular Gain/Loss and AMT Gain/Loss.

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 21:28:20 GMT

The date it is paid on the date the partnership recorded your interest in the partnership and you as a partner.

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 21:27:02 GMT

For 'Sale Date', what do I put? That would be the date the partnership ended. That should be listed in the K-1.

Re: Final K-1 Question

mellynlee — Wed, 28 Sep 2022 21:31:15 GMT

OK, so the Purchase Date was the day we wrote our check: 2/13/2018

The sale date should be the date of the final check that we received? 12/17/2021

I have received a K-1 for 2018, 2019, 2020, and 2021 and have entered the requested information from these K-1 forms every year in TurboTax. However, this is the first final K-1 I have received, and since this limited partnership has ended (since the land has been sold), TurboTax is requesting this additional information.

Are there instructions on how to fill out the TurboTax form requesting the Regular Gain/Loss and AMT Gain/Loss? I have no idea what to put on that page.

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 21:32:28 GMT

From there do not enter any gain or loss information for the total purchase and sale in the K-1 section. Enter ZERO for both cost basis and sales price here. You will enter this information in a different area of Turbo Tax. By the way, if you purchase TTLive, an expert will walk you thru these steps on the phone with smart look, answer any questions, and make sure you are 100% comfortable with your entries.

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 21:34:51 GMT

I apologize, and edited that post for the purchase and sales date -- see correction in above post. But honestly if the dates are close to that, that is all that matters, since this is a long term gain regardless.

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 21:38:52 GMT

"I have received a K-1 for 2018, 2019, 2020, and 2021 and have entered the requested information from these K-1 forms every year in TurboTax." -- This is great, and you will need this information. I will tell you why shortly.

"Are there instructions on how to fill out the TurboTax form requesting the Regular Gain/Loss and AMT Gain/Loss? I have no idea what to put on that page." - Ignore this section. You will be entering the gain/loss in another area of Turbo Tax to assure it receives capital gain treatment.

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 21:41:26 GMT

Did you have gains or losses each year flow thru from the K-1 in the LP?

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 21:45:54 GMT

Now lets record the sale. I'm presuming you are in Turbo Tax Online.:

Click on Federal > Wages & Income
In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other. If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far. Click on the Add More Sales link.
If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 20XX? Click the Yes box.
On the screen, OK, what type of investments did you sell? mark the Other box and click Continue.
When you get to the screen, Now we’ll walk you through entering your sale details enter the details of the sale.
Click Continue when done.

Re: Final K-1 Question

mellynlee — Wed, 28 Sep 2022 21:49:02 GMT

I'm sorry...I seem to be replying to your earlier posts, and then I saw your later posts.

To summarize:

The Purchase Date is the date they received my check and confirmed (2/16/2018)

The Sale Date is not listed anywhere on the Final K-1 (there is no date listed). I have the stub of final check sent to me, along with a dated memo stating the final sale occurred. The date is 12/17/2021, so I will make this the Sale Date.

I'm not sure what you are referring to when you mention to enter ZERO for cost basis and sales price. TT does not ask me for this information here.

On the next page, TurboTax asks for the following: Selling Expense, Partnership Basis, Ordinary Gain, 1250 Gain

I have no idea what to put there.

I would love to use TTLive, but I purchased TurboTax Desktop, and I thought you could only use TTLive if you purchased the online version?

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 21:52:08 GMT

In the Sale of Investment Section enter Sales price to equal the amount of the check you received from the LP upon dissolution.

For purchase price enter the adjusted partnership basis. That calculation is: Purchase price + additional contributed capital + profit for each year LESS distributions + losses for each year.

Re: Final K-1 Question

mellynlee — Wed, 28 Sep 2022 21:52:29 GMT

Sorry, I replied to an earlier post, and just saw your other posts.

To answer your question about gains/losses flow through from K-1 to LP...I'm not exactly sure what you mean. If you mean, did I receive any other checks from this LP, the answer is NO. This is the only check I have received (in 2021), and I don't believe we had any gains or losses in the previous years since we were waiting for the land to sell.

Re: Final K-1 Question

mellynlee — Wed, 28 Sep 2022 21:54:08 GMT

Hi,

I see all of your additional posts. I am NOT on TT Online, I have TT Desktop - does that matter?

Also, I'm SO sorry, but I have to leave for an appointment now, but will be back in 1 1/2 to 2 hours...will I be able to contact you again?

Thank you so much!

Re: Final K-1 Question

Irish22_CPA — Wed, 28 Sep 2022 22:00:33 GMT

I'm sorry I will be off shift then. I can recheck tomorrow. The steps in Desktop will be very similar. Give it a try and let me know. Or you can call in - we do offer live advice for desktop, but they will ask for an upgraded charge from you. The important thing is to leave the gain amount blank in the K-1 section. And record it in the Investment area. Unless you can determine the gain/loss amount based on the basis calculations steps I provided you. That would work also. Ignore the AMT area. If you are high income, just enter the same amount.