Final K-1 Schedule

Forum|Forum|3 years ago
October 13, 2022
2 replies
34 views

I had an investment in my brokerage account for three years; a PTP, purchased by my broker. Early 2021 my broker decided to do some selling and shifting of assets in my account. The PTP company transferred all units of their stock, held in my account, to my broker who proceeded to sell all the units the next day.

I received a final K-1,my Ending capital is 0;

Boxes 5, 6a, 8, 9a are all 0. Box 11 = 0 code C, Box 13 =0 code H, 2 code W; Box 19 = 0 code A, and

Box 20 = 0 code A. There are no amounts in any other boxes.

Any capital gains/losses have been reported on my 1099-B

How do I fill out the TT sales chart? Since the account was closed out with a transfer of shares, do I use the Beginning capital account amount in section L, of K-1 as my cost basis, and

withdrawals and distributions as my selling amount? OR

Do I have to use the sale amount that my brokerage firm received when they sold the units?

Thank you,

TurboTax Home & Biz Windows

Best answer by nexchap

Given the 0's on every box of the K-1 (ignoring the $2 for 13W), your beginning capital account can be used as your cost basis. The sales proceeds would be the amount you (or your broker, on your behalf) received for the sale of PTP units.

Be sure you don't double count the capital gains/losses from the sale. Any capital gain/loss calculated on the K-1 interview will go to your return as a new 1099-B (code C or F). If you also report the same gain/loss on your broker's 1099-B, you've double-reported. Solve this by either setting the cost equal to proceeds on the broker 1099-B, or on the K-1.

Note that you need to verify that the broker's 1099-B used the correct cost basis (typically they don't). If not, you'll have to adjust it.

Anonymous_

Level 15

@nexchap

nexchap

Answer

Level 9

Note that you need to verify that the broker's 1099-B used the correct cost basis (typically they don't). If not, you'll have to adjust it.

**Say "Thanks" by clicking the thumb icon in a post. **Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user. . Use any advice accordingly!

OldBear

Level 2

Hi CHAMP :

I received final K-1 and 1099-B. I try to follow your way starting from K-1. I used TT premier version.

I start K-1 view from TT Business items. Then I key in all info of K-1. "Ordinary gain" question never appear on TT interview. I could not fill out "Gin subject to recapture as Ordinary Income", AMT Gain.loss Adjustment.

This isseus bother me so long. Is TT premier can not handle Trading partnership stocks ? I need helps .

nexchap

Level 9

@OldBear At the beginning of the interview, in "Describe the Partnership", you have to check either "This partnership ended..." or "Disposed of a portion of my interest..." to get the sale screens to pop up. Those sale screens allow you to enter the Ord Gain.

**Say "Thanks" by clicking the thumb icon in a post. **Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user. . Use any advice accordingly!