I bought and sold a single share of USO, LP. I owned the share maybe 7 or 8 days. I sold it for a small loss (76 cents). I got a K-1 from USO. It looks like I acquired and sold one "unit" of the partnership. Most of the K-1 is blank.
My question is how do I fill out the "Describe Partnership" and "Sale Information" sections. Specifically, do I need to check the "Disposed of a portion of my interest in partnership during 2021" box? And, if I do check that box, then on the next screen titled "Tell Us About Your Sale", do I select "Sold Partnership Interest"?
It's confusing because two pages later (Enter Sale Information), it asks for the "sale price" (49.09) but doesn't ask for the purchase price (49.85). So then it calculates my capital gain as $49, but I lost money on this deal. There is an item called "selling expense" which might be where I put the 49.85, but that doesn't sound right to me.
Screen shots of the pages are included for clarity. Thank you.
Describe the partnership screen- select Disposed of a portion of my interest.
The second screen comes after selecting the disposed of portion and your entry is correct.
The third screen - You have marked that you sold your interest in the partnership for $49. You need to mark the amount paid to buy into the partnership in the Partnership Basis box, two below the sales price.
Selling expense would be for fee, commissions, other charges associated with the sale of the partnership.
Describe the partnership screen- select Disposed of a portion of my interest.
The second screen comes after selecting the disposed of portion and your entry is correct.
The third screen - You have marked that you sold your interest in the partnership for $49. You need to mark the amount paid to buy into the partnership in the Partnership Basis box, two below the sales price.
Selling expense would be for fee, commissions, other charges associated with the sale of the partnership.
I sold my interest in the partnership and am being paid over three years. Do I have to pay all of the long term gain in the first year? If not, how do I tell Turboax to spread it out?
Thansk
in this section enter 0 for sales price and 0 for partnership basis (that's your cost). the reason is this section is really for ordinary income recapture on the sale. it is treated as sales proceeds not reported to the IRS. this can cause a problem because the broker reports the sales proceeds to the IRS so there's an error on your return. that could generate a notice.
from the cd version forms mode
Note: if this is a full or partial disposition of a publicly traded partnership (PTP) or master limited partnership (MLP) that was reported to you on 1099-B, enter a sales price of zero on line 5 and a basis of zero on line 7 below. Enter the 1099-B transaction on schedule D (really form 8949), checking the appropriate “Reported on 1099-B” box A or B.