This is a significant problem with Turbo Tax’s K-1 interface that needs to be fixed.
On the K-1 page titled “Describe the Partnership”, a checkbox asks “Disposed of a portion of your interest in 2024?” If you check the box, fields appear that collect data on the sale: proceeds, cost basis, date of acquisition, …, which allow it to compute the capital gain you owe on the sale. However, this same capital gain has already been computed based on the 1099-B form provided by the brokerage that handled the sale. The second reporting as part of the K-1is a repeat of the capital gain. The question about disposal of a portion of your interest should be made conditional: e.g., Have you disposed of a portion of your interest in 2024 without the capital gain being reported elsewhere in your return? Or simply ask the user if you want the capital gain to be computed within the K-1?
I’m very surprised that this problem hasn’t been fixed in Turbo Tax. I’m sure thousands of users encounter this problem every year when working on their K-1 schedules. The easy workaround is to uncheck the box preceding the question. I think this problem may have been identified previously.
