I do options trading, so my broker sends me a long detailed 1099-B with all the transactions for 2023.
One of the ETFs for which I held shares during 2023 is managed as a partnership, so that manager also sends me a K-1.
I know that to avoid duplicating the gain/loss, I have to adjust the gain/loss on the 1099-B. I find the amount to adjust the gain/loss by the amount in the K-1, Part II, secion "L", the amount on the line "Current year net income (loss)", in my case a positive $909.
I have 2 questions:
1. Can you confirm that the basis adjustment is made on the "Form 1099-B Worksheet"?
2. If on the "Form 1099-B Worksheet", which field to "override": "Gain/Loss", "Adjustment Amount", or "Adj(Gain/Loss)"?
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On Q2, TT now makes those adjustments on a separate 'Adjustments Worksheet' for each transaction that needs to be changed. Don't override anything on the 1099-B worksheet, as that can cause problems. Double-clicking on the 'Adjustment Amount' box in the 1099-B worksheet will open up a new worksheet to make the adjustment.
1. Can you confirm that the basis adjustment is made on the "Form 1099-B Worksheet"?
yes
2. If on the "Form 1099-B Worksheet", which field to "override": "Gain/Loss", "Adjustment Amount", or "Adj(Gain/Loss)"?
the ETF should have sent you a sales summary for your sales. that is what you need to use to figure your proper tax basis in the ETF for each sale. The 909 might be correct but are any distributions showing in schedule L.
In addition, if you had multiple buys and sells during the year, you have to watch for wash sales which the broker won't catch because they don't know your actual tax basis. It could even indicate a wash sale when it isn't.
On Q2, TT now makes those adjustments on a separate 'Adjustments Worksheet' for each transaction that needs to be changed. Don't override anything on the 1099-B worksheet, as that can cause problems. Double-clicking on the 'Adjustment Amount' box in the 1099-B worksheet will open up a new worksheet to make the adjustment.
This year, I was able to mark up the specific transactions of the 1099-B, based on the information in the K-1.
The K-1 also had the line 16 checked, indicating a K-3, and based on numerous other posts, I unchecked that on my K-1, with the expectation that later this summer, when I finally can get the K-3, I may need to do an amended return with the K-3. But I don't actually expect to need to do that, since I don't meet any of the normal K-3 situations.
I consider my issue resolved.
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