@KathrynG3 Appreciate your comments on a related question I have. This is the first time I am handling MLP K-1. I think I figure out the Federal part, but have a problem in NJ K-1 reporting. I sold 100% (all short-term) of the units I owned in 2020. Due to a big cost adjustment ($48K) reported in K-1 Sales Schedule, I ended up a similar amount of cap-gain (from the sale), reported in NJ-DOP. (I actually made a small amount of loss according to 1099-B sales, but I have to adjust the basis according to K-1). In Federal tax, such gain is offset by the "Other income/loss" reported in K-1 line 11C (in this case it's -$49K in loss) in Schedule D. But this is not happening in NJ return generated by TurboTax. The loss from K-1 11C is shown up in NJ-BUS-1 but will not roll up in NJ-1040 p2, (line 21 is to report the partnership income, but will not report the loss (now is empty)), while the gain in NJ-DOP is included and rolled into NJ-1040 line 19 for “net gain/income from disposition of property”). So in net, I need to pay the tax on a bit "cap gain" but did not find a way to offset it with the business loss. I am wondering if you have any advise how to address this issue? What I am thinking is to mark off the related sales transactions in NJ-DOP, and report the gain + loss in line 11 ("Other income/loss") of NJ K-1 Reconciliation Worksheet A. Would this make sense? Thank you in advance for any light you can shed on this matter.
