Hi!
I rec'd a K1 from EPD (a MLP); I also received a 1099 from Fidelity with the Buy/Sell transaction reported (I bought and sold in 2021). How can I accurately report the information in the K1 without having to (duplicate) report the purchase and sell of the security?
Thanks!
nope. all Fidelity did was report the sale. not the k-1 activity because it does not receive the k-1
make sure the PTP box is checked on the TT k-1
enter the k-1 info - do not check the k-3 box
assuming total disposition
check final k-1. that should be checked on the k-1 you got
indicate that there was a total disposition.
report the ordinary portion of the sale through the k-1
sales price is the amount in column 7 of the sales schedule
cost is 0
ordinary income is the same as the sales price
if done correctly this will flow to form 4797 line 10
now you need to adjust the cost basis of the security as reported on the 1099-B.its wrong
you cost basis for the 1099-B is column 6 from the sales schedule + column 7
example - all number are made up
sales price 10,000 column 3 you fill in
purchase price 8,000 column 4 and is provided
cumulative adjustments to basis -2000 column 5
a) cost basis 6,000 combination of column 4 and 5 column 6
total gain no column but is column 3 less column 6 4,000
b) ordinary income 3000 column 7
capital gain 1000 no column but is total gain less column 7 (in your situation it's possible to end up with a loss
cost basis for1099-B
a) 6,000
b) 3,000
total 9,000
other things to watch for EPD is a PTP that generates section 199A income line 20Z!. if you want the 20% deduction it must be entered in the 199A section of the k-1 (20Z1) goes nowhere
in addition, the gain in column 7 of the sales schedule is also 199A income and should be entered on the line that says total ordinary gain in the 199A section
Since you bought and sold in the same year (so the entire sale is short term), you can simply delete the 1099-B and enter all the sale information in the K-1 (using the Sales Schedule they provided). Note that the broker's reported basis is wrong -- you have to use the basis calculated on the K-1 Sales Schedule.
Alternatively, you enter the Ordinary Income part of the sale in the K-1 section, and the Cap Gain/Loss part in the 1099-B section. This thread walks through how to do that: https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale-of-mlp-shares-in-turbo-tax-i-sold-all-shares/00/776624
If you have a K-1 and a 1099-B for the same items and amounts you have two options.
Either of the methods will enter your information without any duplication.
nope. all Fidelity did was report the sale. not the k-1 activity because it does not receive the k-1
make sure the PTP box is checked on the TT k-1
enter the k-1 info - do not check the k-3 box
assuming total disposition
check final k-1. that should be checked on the k-1 you got
indicate that there was a total disposition.
report the ordinary portion of the sale through the k-1
sales price is the amount in column 7 of the sales schedule
cost is 0
ordinary income is the same as the sales price
if done correctly this will flow to form 4797 line 10
now you need to adjust the cost basis of the security as reported on the 1099-B.its wrong
you cost basis for the 1099-B is column 6 from the sales schedule + column 7
example - all number are made up
sales price 10,000 column 3 you fill in
purchase price 8,000 column 4 and is provided
cumulative adjustments to basis -2000 column 5
a) cost basis 6,000 combination of column 4 and 5 column 6
total gain no column but is column 3 less column 6 4,000
b) ordinary income 3000 column 7
capital gain 1000 no column but is total gain less column 7 (in your situation it's possible to end up with a loss
cost basis for1099-B
a) 6,000
b) 3,000
total 9,000
other things to watch for EPD is a PTP that generates section 199A income line 20Z!. if you want the 20% deduction it must be entered in the 199A section of the k-1 (20Z1) goes nowhere
in addition, the gain in column 7 of the sales schedule is also 199A income and should be entered on the line that says total ordinary gain in the 199A section