How to enter Final Schedule K1 into Turbotax?

[alex1907]

I received my final Schedule K1 for my partnership investment that ended in 2024. I do not know what to enter for questions like "sale price", "selling expense", "partnership basis" for Regular Gain or Loss and AMT Gain or Loss. I am completely at loss. 

Should I enter "Withdrawals and distributions" for the "Sale Price" ?

Should I enter "Beginning capital account" for the "Partnership Basis" ?

[ThomasM125]

If you received a distribution upon the termination of your interest in the partnership that would be the sale price. Any expenses you incurred to receive your distribution would be selling expenses. Your partner basis would be what you originally invested, plus income you were taxed on over the years, less losses, less distributions plus any additional amount you contributed. In other words, your net investment in the venture. You can look at your capital account on your K-1 schedule to help with that.

The sale price minus your basis will be the amount of the distribution that is taxable. It should represent the portion of the distribution that is additional income to you over what your net investment was.  

[AthanE]

The company providing the K-1 should also provide instructions of where to put these values. Check their website if not included with the K-1 form. Also, if you have an account with their investor website, you can download the K-1 as well as instructions and possibly a TXF file that you can upload to Turbotax. This uploading will post the values in question to the correct K-1 entry form boxes.

[alex1907]

Thank you for your answer. Based on your explanation, my understanding is that 

Cost Basis: Beginning capital + income allocations - losses + contributions - distributions.

Isn't it the same thing as Beginning Capital Account in the last K1? Doesn't the final K-1 provide a full capital account reconciliation and show cumulative basis adjustments?

Here are section L from K1s from the partnership, starting in 2020 and ending in 2024.

2020

Beginning Capital Account: 0

Capital Contributed During Year:  25000

Current Year Net Income (Loss): 0

Other Increase (Decrease): 0

Withdrawals &Distributions: 0

Ending Capital Account: 25000

2021

Beginning Capital Account: 25000

Capital Contributed During Year:  0

Current Year Net Income (Loss): 52

Other Increase (Decrease): 0

Withdrawals &Distributions: 0

Ending Capital Account: 25052

2022

Beginning Capital Account: 25052

Capital Contributed During Year:  0

Current Year Net Income (Loss): 29282

Other Increase (Decrease): 0

Withdrawals &Distributions: 54107

Ending Capital Account: 227

2023

Beginning Capital Account: 227

Capital Contributed During Year:  0

Current Year Net Income (Loss): -5

Other Increase (Decrease): 0

Withdrawals &Distributions: 203

Ending Capital Account: 19

2024 (Final K1)

Beginning Capital Account: 19

Capital Contributed During Year:  0

Current Year Net Income (Loss): 16

Other Increase (Decrease): 0

Withdrawals &Distributions: 35

Ending Capital Account: 0

What should be my cost basis? Thank you.

[PatriciaV]

If you need help calculating your adjusted basis, see the IRS Worksheet for Adjusting the Basis of a Partner's Interest in the Partnership.

[AthanE]

Check the link PatriciaV posted for IRS guidance.

Here is how I see your situation: your final K-1 deals with only 35 partnership units. In 2022 and 2023 you sold most of your units and any monetary value of those sales should have been addressed by your broker's 1099 statement. Any company (K-1 issuer) transactions corresponding to your units ownership at the end of the year were addressed by the previous K-1 forms.

For 2024 any monetary transactions (as a unit owner) are addressed by your broker 1099 statement. Your broker monthly statement right before you sold the units should show you the average cost and cost basis of each tax lot.

Any company (K-1 issuer) transactions corresponding to your units ownership are addressed by the current (2024) K-1 form.

You may consult your broker statement for the cost/loss and purchase/sale expenses of the 35 units. Previous years’ unit transactions are addressed by the previous years’ K-1 forms.