Surprisingly, my former employer had an equity event in 2023. I had been granted shares as an employee and received a payout due to this event(I received proceeds minus the strike price). I have finally received the K-1 and 3k-1. In the Reconciliation of Partner's Capital Account, line 26, "Massachusetts net income for the year," is less than line 27, "Entire net income for the year." I am not sure why or how to report this. Do I answer "yes" when asked if there is a difference and then enter the difference as a negative number since it is less? I am worried because when the question is presented in TurboTax asking if there is a difference, a message says, "This is uncommon."
Also, on the federal return, should I answer that I disposed of part of my interest in the partnership due to this equity event? Not all shares were involved in this event.
Thanks!
I'm not exactly sure what question TT is asking or in what context:
I'm not exactly sure what question TT is asking or in what context: