K-1 Ownership Interests sold in 2016 but only received K-1 from 2015

[amydianet]

I sold my ownership interests in a K-1 on February 16, 2106 but was told 2015 would be my final K1.  Where/how do I report the sales of my ownership interests?  Should I have reported the sale in 2015 even though the sale was not effective until 2016?

[PatriciaV · Accepted solution]

Yes, you may report this sale on your current tax return. Enter this under Wages & Income >> Investment Income. 

While you might have reported the investment as disposed of in the year of the final K-1, since you actually sold the investment in the following year, you should report the sale in the year it occurred.

1. Choose Federal Taxes >> Wages & Income, then I’ll Choose What I Work On.
2. Investment Income >> Stocks, Mutual Funds >> Start/Update.
3. Type of Investment: Everything Else
4. Enter a description, Net Proceeds of sale, and date of sale
5. Acquired: whatever method fits
   
6. Cost Basis: your net investment as of the date of the sale
   Note: The capital account reconciliation on the K-1 is not necessarily your book value for the investment. You should have separate records of investment, distributions, allocated income/loss, etc. to determine your basis on the date of the sale.
7. Date of Acquisition: the first date you contributed to the partnership