How do i report short term PTP sale? Received 1099B and K1.

[Asia527]

Do i report sale  from 1099B or K1?  

[nexchap]

I've found it to be easiest to report it on the 1099-B, but you still need to enter the K-1 as well.  The trick is to make sure that the Cap Gain only gets reported once.  Here's a thread that discusses it in more detail:  https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale...

[Asia527]

So I enter ordinary gain as $37,689 and AMT gain as -4,001? So my adjusted basis is my original purchase amount minus $21,762?  Then my capital gain is sales proceed - adjusted basis - ordinary income?  Thanks for your help?

[nexchap]

Sort of.

AMT gain is $4,001 less than Ordinary Gain, so $33,688.

Your overall cost basis is 21,762 less than your purchase price.  So your TOTAL gain is sale price less overall cost basis.  But that TOTAL gain is split -- part of it is taxed as Ordinary Gain, and part is taxed as Cap Gain.  So you need to make sure the Cap Gain that appears on your 1099-B reflects that.

[Asia527]

Another question, are PTP redemptions (non-voluntary sale of PTP shares) treated the same as sale of PTP shares for tax purposes.  My K1 says these should not be taxed because they are consider return to capital therefore reducing tax basis. Thanks.

[nexchap]

@Asia527 I haven't run into that before, so wouldn't want to guess.  The K-1 may have more information on how to split things between basis adjustments, Ordinary Income, and Cap Gain.  Otherwise, you'd want to follow up with a Tax Professional so you can be sure the right numbers appear on the right forms.