K-1 box 19A
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Returning Member

K-1 box 19A

If I enter a Distribution amount on line 19A from a K-1 for a PTP, does TurboTax automatically adjust the basis for that PTP or do I need to manually adjust my basis? (Also, is that even the correct treatment for the distribution amount in box 19A?

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Level 15

K-1 box 19A

 
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Level 15

K-1 box 19A

TT does not use 19A or section L for anything. it does not track your tax basis.  in fact, you could leave 19A as well as section L blank they are not transmitted as part of the e-filed return. 

 

PTP'S present section L on a tax basis.  so as long as the ending capital a/c  (+ the nonrecourse liabilities and qualified nonrecourse financing) is positive the distribution is not taxable.   When you sell the PTP. it will send you a supplemental schedule along with the K-1 for you to figure your capital gain/loss and ordinary income if any.   it will reflect your basis so no need for you to do so.  the broker's 1099-B will be incorrect since it only knows what you paid.   it does not a/c for the partnership's income/loss or distributions.  in addition you might be surprised.  With some PTP's some part of the gain from the sale is section 751 income which must be reported as ordinary income. 

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