How do I enter sales from a PTP if I received a K-1 and a 1099-B?

[mrlloyd95]

Hi, I'm looking for some help with how to correctly enter info from an investment in a PTP (Brent Oil ETF// BNO) for which I received a K-1 and a 1099-B from my broker. Of note, the 1099-B says that Basis is reported to the IRS so check "Box D" on the Form 8949, but from what reading I've done it seems like that still might not be correct. In the end, I want to know what I need to change on the 1099-B entry in turbotax, and what I should enter in the K-1 section on the page for "Sale price, Selling Expense, Partnership Basis, Ordinary Gain, and 1250 Gain"

Thanks or any help!

From my K-1:

Section L: Beginning Capital = 284

                           Current Year Loss = -4    

                           Withdrawals = 280          (sold all my shares at the end of 2023)

                           Ending Capital = 0

Line 5 Investment Income = 6

Line 6a Ordinary Dividends = 8

Line 11 ordinary income = code C (Section 1256 contracts and straddles) = -16 

Line 13 Other deductions = code ZZ (trader expenses) = 2

Line 20 code A = 14

Line 20 code AA = 2

The Sales Schedule shows 100% long term with 10 shares sold:

Sales Proceeds = blank

Purchase price/ initial basis = 77

cumulative adjustments to basis = 203

cost basis = 280

From my 1099-B

"Long-Term Transactions for which basis is reported to the IRS - Report on form 8949, Part II with Box D checked"

1d Proceeds = 276.60

1e Cost or other basis = 64.00

Realized Gain = 212.60

Additionally, if it makes a difference, I noticed that the K-1 and 1099 report a different basis method. The K-1 uses average cost for an initial basis of $77, but the 1099-B uses FIFO, so the 10 shares I sold were bought at a cost of $64.

Finally, since I sold the rest of my interest in the partnership, why does the withdrawal on the K-1 of 280 not match the 1099-B PRoceeds of 276.60? It's only a few dollars off but seems like more than just rounding error. Do I need to look at getting an updated K-1?

[mrlloyd95]

@Mike9241  you have seemed pretty knowledgeable on this for some other posts I read, but I couldn't quite make it translate to my situation. Do you think you could give a crack at this?

[PatriciaV]

Your best option is to report Form 1099-B using the correct cost basis and not the sales information from Schedule K-1. You may need to change to "not reported" if you use a different cost basis.

Schedule K-1 reports the amount of withdrawal/adjustment that brings your account to zero, while the 1099-B may include sales costs that aren't recorded by the PTP.

[WrongWaveWilly]

PatriciaV,

So you saying to enter the PTP sale information as reported on the 1099-B...(which is what I do).

However, do you also "ENTER SALE INFORMATION" via the K-1 Interview or does this duplicate what was on the 1099-B?

[PatriciaV]

Entering the sale information again from Schedule K-1 will result in a duplication. Follow the instructions here to enter this PTP sale: How do I report the sale of Publicly Traded Partnerships (PTPs) or Master Limited Partnerships (MLPs...

@WrongWaveWilly 

[WrongWaveWilly]

@PatriciaV ,

Thank you so much!

Final question...on the 1099-B Form should I also check the box below 1e for "The cost basis is incorrect or missing on my 1099-B" when I adjust the Cost Basis?

[PatriciaV]

No, you don't need to check the box for an incorrect cost basis. Simply enter the correct cost basis in Box 1(e).

Generally, that box is used if there were selling expenses that weren't deducted from the sales proceeds or the holding period is incorrect.

@WrongWaveWilly