On the advice of a friend, I started experimenting with investing via M1 Finance as I could do fractional shares which made it affordable for me. So I now have a 1099-B from M1 listing all the companies I invested in and some K-1's from various L.P.s (if only I'd known how much of a pain these L.P.s are to deal with when it comes to taxes I would have never touched them but I guess we live and learn) and I'm wondering how to properly enter all the info so nothing is duplicated.
The amounts are very small and I'm not sure it will even make a difference in my taxes but I still want to get it done correctly. I've looked around on the forums here but can't understand what needs to be done and the one instruction I could find that I could understand, TurboTax wouldn't let me do it.
So I was wondering if someone can help me and walk me through step-by-step? Please? If so I'd really appreciate it!
Here's an example using the info for BSM, one of the L.P.s, from my M1 1099-B and the info from the K-1 they sent, in case that helps.
|Black Stone Minerals, L.P. (BSM)|
|Date Sold (box 1c)||12/09/2019||12/09/2019|
|Procedes/Reported to IRS (box 1d)||$1.01||$1.43|
|Cost or other basis||$1.06||$1.55|
|Accrued Market Discount||$0.00||$0.00|
|Wash Sale Loss Disallowed||$0.00||$0.00|
|J Partner’s share of profit, loss, and capital:||Beginning||Ending|
|K Partner’s share of liabilities:||Beginning||Ending|
|Qualified nonrecourse financing|
|Check this box if Item K includes liability amounts from lower tier partnerships.||x|
|L Partner’s Capital Account Analysis|
|Beginning capital account||$0.00|
|Capital contributed during the year||$15.00|
|Current year net income (loss)||$0.00|
|Other increase (decrease)||$0.00|
|Withdrawals & distributions||-$3.00|
|Ending capital account||$12.00|
|1 Ordinary business income (loss)||0|
|2 Net rental real estate income (loss)|
|3 Other net rental income (loss)|
|4a Guaranteed payments for services|
|4b Guaranteed payments for capital|
|4c Total guaranteed payments|
|5 Interest income||0|
|6a Ordinary dividends|
|6b Qualified dividends|
|6c Dividend equivalents|
|8 Net short-term capital gain (loss)|
|9a Net long-term capital gain (loss)|
|9b Collectibles (28%) gain (loss)|
|9c Unrecaptured section 1250 gain|
|10 Net section 1231 gain (loss)||0|
|11 Other income (loss)|
|12 Section 179 deduction|
|13 Other deductions|
|14 Self-employment earnings (loss)|
|16 Foreign transactions|
|17 Alternative minimum tax (AMT) items|
|18 Tax-exempt income and nondeductible expenses|
|20 Other information|
|AMT Item: Oil, Gas & Geothermal-Deductions||17E||0|
|AMT Item: Excess Intangible Drilling Costs||17F1||0|
|Sustained Depletion - Working Interests||20T1||0|
|Cost Depletion - Working Interests||20T2||0|
|Percentage Depletion in Excess of Cost Depletion - Working Interests||20T3||0|
|Sustained Depletion - Royalty Interests||20T4||0|
|Cost Depletion - Royalty Interests||20T5||0|
|Percentage Depletion in Excess of Cost Depletion - Royalty Interests||20T6||0|
|Percentage Depletion in Excess of Basis||20T7||0|
|Net Equivalent Barrels||20T8||0|
|Unrelated Business Taxable Income or Loss||20V||0|
|Section 199A Publicly Traded Partnership (PTP) Income||20Z1||0|
|Qualified PTP Item - Section 1231 Gain (Loss)||20Z2||0|
|Qualified PTP Item - Ordinary Income on Sale of Interests||20Z3||0|
|Section 751 gain (loss)||20AB||0|
|Excess Taxable Income||20AE||0|
|Excess Business Interest Income||20AF||0|
|BEGINNING OF YEAR UNITS||0.00000|
|Units Sold||Sale Date||Sales|
Price / Initial
|Cost Basis||Gain Subject to|
A big thank you to whoever can help!
If you have a K-1 and a 1099-B for the same items and amounts you have two options.
- Enter the information from the K-1 and do not enter the 1099-B information.
- Enter the information from the 1099-B and do not enter the K-1 information.
Either of the methods will enter your information without any duplication.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Thank you for the info.
Seeing as the K-1 has some additional information that the 1099-B does not, can I simply delete the entries pertaining to Black Stone Minerals, L.P. from the 1099-B that was entered or will that cause problems?
Yes, you can delete the duplicated details from Form 1099-B. The problem is caused by the duplicate information received and entering it in both places. It is appropriate to enter it as you suggested, through the Schedule K-1 input.
shouldn't missing K1 or have a lower amount stated on 1099B trigger some variance somewhere? Broker does report their calculated amount to IRS ? it probably does not matter if the amount is minimal, but what if it gets bigger?