Final K-1 Reporting Process

We received a Final K-1 from a PTP and we are confused on how to properly report this in TT.

The shares were sold at a profit in 2022 and are being reported on 1099-B so we don't want to have it counted twice. We have looked through the other posts about this and are still confused.

So far, we checked that it is a PTP and checked that the partnership ended in 2022.

Next, in "Describe Partnership Disposal", we are not clear on whether to check "No entry" or "Complete disposition" so we don't duplicate the information that is being reported on the 1099-B. However, we want to make sure that this Final K-1 is reported properly. In other posts, sometimes it is suggested to pick "No entry" while others say to pick "Complete disposition." Please clarify which to pick.

Can you please help us with the steps we need to take to report this properly in TT as it is not very explanatory.

Thank you very much!

416

Expert Alumni

Apr 17, 2023 2:41:28 PM

Only report the sale once. The sale can be reported through the K-1 screens or through IRS form 1099-B entries.

Be aware that if:

At the screen Describe the Partnership, you report Disposed of a portion of my interest.... and
At the screen Tell Us About Your Sale you reported Sold Partnership Interest,

the sale is being reported. You would not report the sale on IRS Form 1099-B Proceeds.

Alternately, you may report within the K-1 entries,

at the screen Describe the Partnership, select This partnership ended in 2022, and
at the screen Describe Partnership Disposal, select No entry.

In this case, you would report the sale on IRS Form 1099-B Proceeds.

Review the sale of the investment reported on IRS Form 8949 Sales and Other Dispositions of Capital Assets and IRS Form 1040 Schedule D Capital Gains and Losses.

You are able to view the entries at Tax Tools / Print Center / Print, save or preview this year's return.

@JAAA4

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Final K-1 Reporting Process