Final K-1 Schedule

[kfmamma]

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,

TM

[Anonymous_]

@nexchap 

[nexchap · Accepted solution]

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.

[OldBear]

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]

@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.

[OldBear]

Hi Nexchap :

         Thank for your help for file Schedule 1.   But I filed Fed tax with wrong K-1 calculation 2 weeks ago.

         Can  I file amended file to IRS now ?

[nexchap]

@OldBear I'm not aware of any reason you can't amend now, but I'm no expert on that timing.  You may want to post a separate question about it just to see if there's some reason to wait.

[MoniqueLO_]

If your e-filed return is pending, you will not be able to make any changes until it is accepted or rejected by the IRS. Please see How do I amend my federal tax return for this year? for more information. 

@OldBear 

[OldBear]

IRS accepted my e-file but IRS need more time to process.   I This is current status.    I have been waiting morn than 2 weeks long.   I did not file state tax return yet.  For state return, do I file corrected version or  bugged version  state tax return ?    Time is run out.  If I file more corrected State tax return, Then FED and  State taxs not match.  I stuck this issues.  If some one give me a suggestion ?

[OldBear]

one question.  I follow your way.

enter Sale : 0

partner basis :    -4477 ( for Regular)   ,  16 ( For AMT)

ordinary gain :    4477  ( for Regular ),    -16 ( for AMT).

As result,   4477 enter into Form 4797 Part 2, line 10,   ( perfect !!!)

But  Form 6251  AMT  line 25  show  -4477 not  -16.

The number is  so large.  why ?  How can correct the right no.

OldBear

[nexchap]

@OldBear The AMT column should have 4461 for ord gain (4477-16).  -4461 for basis.

[OldBear]

I check out my form 6251,  AMD line 2k show -4477.   number -16  came from Sales worksheet of final K-1 "AMT Gain/Loss Adjustment" column.

[nexchap]

@OldBear Right.  "-16" on the Sales Worksheet is an adjustment to the regular amount.  You add that number to your regular number to get your AMT amount.  So 4477 + -16 = 4461.

[OldBear]

only explanation for my case ,  is "Ordinate Income" is treaded by 0 for AMD.  Look like  or Incentive stock  trading.  so Form 6251 AMD line 2k handle as 0 - 4477 (Regular Ord) =  -4477.  It show out in my form 6251. That is why  -16 (AMD) be ignored.