How to Report Schedule K-1 for RSU Liquidation Event

[dyyyyy]

Hi! I had some vested RSU in the past three years from my old employer (not public). Luckily it was acquired and there was a liquidation event that cashed out all my vested RSU. Thus I received a Schedule K-1 for the liquidation event.

However, when I came to the Turbotax K-1 section, I got confused with what I should select. Specifically,

1. for the 'Describe the partnership' question (screenshot below), shall I select 'this partnership ended in 2020' (it was marked as 'final K1' on the top of the form) and 'disposed of a portion of my interest in partnership during 2020'?

2. And on the 'Describe Partnership Disposal' question (screenshot below), I am not sure is it a 'complete disposal' or 'disposition was not via a sale'?

3. Seems like if I select 'complete disposal', it will also ask my Gain or Loss (screenshot below), but I am not sure where can I find my basis and gain on the form...

Would really appreciate it if anyone can help! Thank you in advance!

describe the partnershipdescribe the partnership disposalsale info

[DavidD66 · Accepted solution]

Yes, you should select 'this partnership ended in 2020'.and 'disposed of a portion of my interest in partnership during 2020'?

Indicate it was a complete disposal.

You will need your cost basis to calculate the gain.  Your employer should have included the value of the RSUs in your income when the units were awarded/vested.  The value that was included in your income is your cost basis.  

[dyyyyy]

Thanks a lot David!