Conversion of partnership shares to new series

[pdunne]

in 2015 I invested in a partnership Series B shares which were converted to Series C in 2021. I received a FINAL K1 for the Series B shares and a new K1 for the Series C shares. When I click FINAL for the B shares Turbo tax askes for the sale details.  These were no sold but rather converted.   How do I record this transaction?

[pdunne]

BTW, the B shares have a $100,000 suspended loss carryover that gets me a big refund if I record as a sale

[Mike9241 · Accepted solution]

only the partnership can tell you what the tax consequences are. it could be a nontaxable exchange where no gain or loss is recognized or it could be fully or only partially taxable. you should have received info about the conversion beforehand

[pdunne]

thanks Mike.  Did that and fudged Turbotax so it was not recognized as a sale.   Just need to get my deferred operating loss carryover moved to the new shares.

[Mike9241]

i would seek pro advice on the PAL from the old shares.   generally. a PAL is released when the property is sold in a fully taxable transaction. and if it's an operating loss rather than a PAL, they might be other tax consequences.