@Rick19744 I noticed that you have answered various questions on K-1s, so hoping you (or someone) can help me! I tried asking this question yesterday, along with photos of my forms, but nobody has answered, so I'm trying again.
Background: We received a Final K-1 because we bought and sold stock in a publicly traded company (short term capital loss for 2024). When entering this K-1, I answered the TT questions as follows:
- This is a publicly traded partnership AND This partnership ended in 2024.
- Partnership Disposal: Complete disposition
- Sold Partnership Interest
Here is my K-1, and Sales Schedule information (I hope this is legible):
K-1
K-1 supplemental info
Sales Information
I then get a screen for 'Enter Sale Information'.
My question is - How do I fill this out?
Regular Gain or Loss
Sale Price: From looking at other posts about this, it sounds like I should put 3602 here. This is equivalent to 20AB Section 751 Gain. Do I ignore K-1 Box 1 of -1964 (Ordinary business income/loss)? And what about the actual sales proceeds of this stock, which was reported on my 1099B?
Selling Expense: From other posts, this should be 0?
Partnership Basis: Should this be the sum of column 7 in the Sales Schedule (Total Adjusted Cost Basis): 56806; Another post suggested this should be 0?
Ordinary Gain: This is 3602 (Section 751 Gain) if I put 3602 as Sales Price and Selling Expense and Partnership Basis are both 0.
1250 Gain: Leave this blank? I don't see any references to 1250 Gain anywhere
AMT Gain or Loss section should be SAME as Regular Gain or Loss?
I'd appreciate any help/advice...thank you!
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Before I provide any additional details, did you receive any proceeds upon selling this PTP?
Appears you did as you indicate you received a 1099-B.
Hello,
Yes, as reported on our 1099-B, our proceeds from the sale of this stock was: 55841
However, our 1099-B cost basis was: 59060 (also shown in K-1 section L Beginning capital account)
Which gave us a short term loss of: 3219
Got it.
Thank you for your reply,
However, I just want to make sure I am getting what you mentioned in this paragraph:
This is what I entered in the Sales Information section (as you suggested):
Sales Information
Was I supposed to put anything into "Ordinary Gain"? (In Sales Schedule, Column 8 - Section 751 Gain, Ordinary Income shows a sum of $3602) Or do I leave it blank as shown?
If the above entries are correct, the next page in TT shows:
Investment Loss on Sale
This shows the short term loss of $965 as you suggested. However, where can I find the "ordinary loss of $2254"?
If I continue through the TT questions, I enter all the information as shown in my K-1, and then I get to yet another screen. However, before I ask questions on that screen, I want to make sure the above is correct so far.
Also, in your next comment about making some adjustments on form 8949, do I need to go into the Forms mode of TurboTax, and make your suggested adjustments to the forms? Do I do this AFTER I finish going through all the interview questions of TT?
Thank you!
Follow-up response:
OK, thank you for your reply. I will assume that what I entered into the Sale Information page of TT is correct.
After I enter all the information from my K-1 into TT, it notes that I have Section 199A income. I then selected:
The income comes from the partnership that generated this K-1
I assume that is the correct answer? This is a PTP, not sure what a REIT dividend is, so I didn't choose that selection.
After hitting Continue, I get the following screen:]
199A income
I entered the Ordinary business income as -1964, which is in box 1 of my K-1 (Ordinary business income)
I entered 1231 gain as -194, which is in box 10 of my K-1 (Net section 1231 gain)
Do I need to fill in any of the other boxes? I have various numbers listed on my K-1 (in photos above), but wasn't sure if I needed to list those here.
Lastly, in response to your statement of: Enter the form 8949 details after completing the K-1 section
When I switch to the 'Forms' display on TT, it shows Form 8949, but I cannot edit it. Am I supposed to be able to edit it somehow?
Thank you!
A couple things:
OK, so should I change the Sales Information page to be like this?
Sale Info
Sale Price = Gross proceeds to stock sale as listed on 1099B
Partnership basis = Sum of column 7 (Total adjusted cost basis) in Sales Schedule of K-1
Ordinary Gain = Sum of column 8 (Section 751 Gain) in Sales Schedule of K-1, ALSO equal to Box 20AB of K-1
If I enter the above numbers, the next page shows a Short Term Gain of -$4,567
Is this section filled out correctly?
---
Also, I didn't see your answer to my question about filling out the form titled "We need some information about your 199A income" (Please see my previous post with the photo. Do I need to fill out any of the other income fields? Was everything on that form filled out correctly?)
Thank you!
Your sales information results in the correct capital loss that I noted after adjusting for the Section 751; so this looks good.
Add the $3,602 Section 751 amount to the Section 199A screen on the "other income / loss" box.
Thank you! I've made it through the K-1 now.
However, I still have questions on your statement here:
You don't edit the form 8949. You enter the 1099-B information described previously as if it was a separate transaction. This is where you need to make sure this information nets to no gain or loss as noted previously.
I guess I'm not sure how to enter the 1099-B information. Are you saying I need to "make up" a new transaction to zero things out?
Here is what the Form 8949 looks like now:
Form 8949 Box B checked
The above shows the 4 (Suburban Propane) stock transactions made from the 1099-B. Box B was checked (short term were basis was not reported to IRS).
Another Form 8949 was also generated - I assume from the K-1:
Form 8949 Box C checked
This Form 8949 has Box C checked (short term transactions not reported on 1099-B)
Can you explain what else I would need to do?
Thanks so much!
Those screen shots are helpful.
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