I got 2024 final schedule k-1 from Cedar Fair. Cedar Fair/Six Flags merger on July 1, 2024. TurboTax asked me question about "Disposition of Partnership Interest" and I need to choose for the following:
1 If disposed of partnership in interest in 2024, check 1a, 1b, or 1c, whichever applies:
a Check if complete disposition in fully-taxable transaction ---> box
If Box 1a is checked , indicate type of disposition:
(1) Check if sold partnership interest
(2) Check if abandoned partnership interest
(3) Check if liquidated partnership interest
(4) Check if transferred partnership interest
b Check if gifted partnership interest
c Check if sold on installment basis
Can you advise me what should I check before I can continue my tax?
Choose 1(a)(1) - sold partnership interest. If you received Form 1099-B, you can report the actual sale from the Investment Income topic in TurboTax (Stocks, etc.). In that case, you would report that the final K-1 represents a sale for the same amount as your basis in the partnership (zero gain or loss).
In the absence of Form 1099-B and any cash payout, the merger is a stock exchange and not a taxable sale. If you did not receive any cash from the transaction, the cost basis of the shares that you received is the cost basis of your previous investment.
See this post by TomYoung for instructions to enter Form 1099-B.