how to report K1 line 20zz9 "Partnership Interest Disposition Gain/Loss Adj for Section 163j"

I sold my entire in this MLP and I know how to report the Ordinary Income and basis adj But here's my question. The K1 reported negative amounts for line 20ZZ8 "Partner Basis and Remedial items for Section 163j" of $-582 and line 20zz9 "Partnership Interest Disposition Gain/Loss Adj for Section 163j" $-71080. How do i handle these two negative amounts?

2604

Expert Alumni

Mar 21, 2025 1:40:59 PM

Both these items may affect your basis in the MLP and are related to excess business interest expense included in your basis and/or gain/loss. You will need to determine if these adjustments apply to you and how to adjust your basis accordingly. Your basis calculation is independent of the entries you make in TurboTax. In other words, you'll need to calculate your basis on your own.

From the IRS: Basic questions and answers about the limitation on the deduction for business interest expense

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how to report K1 line 20zz9 "Partnership Interest Disposition Gain/Loss Adj for Section 163j"