K1 PTP Sales schedule fields (ordinary gain) blank

[LCircuit]

• My K-1 sales schedule (PTP partial disposition) only shows values in units disposed, Disposition date, Estimated Original Purchase Amount or Cost Basis
  • Rest of the fields (like Gain, ordinary gain, capital gain) it is all blank, with instructions to calculate using sales proceed.
• I also received 1099-B (cost basis not reported Form 8949 X) with proceeds and basis and gain/loss N/C

So on Turbotax K1 Disposition form, the instructions indicate to enter sales price 0 on line 5 and basis of zero on line 7 and use 1099-B on schedule D. 

1. On Turbotax K1 disposition form if I enter 0s instead of actual, what values should I enter in the Total gain (loss), Ordinary gain (loss). Since the K1 sales schedule itself doesn't have any values (just instruction to calculate)
   1. Should I enter 0 amount (since sales schedule shows it blank even though instructions above schedule table indicates calculating it), OR
   2. OR should I enter actual gain based on 1099-B data and instructions on K1 sales schedule. (Note entering 0s for sales price and basis, with gain creates 1 extra form 8949 copy)
2. Schedule D (1099-B 8949) - should I enter everything same as 1099-B data + replace N/C in Gain/Loss with calculated gain

[nexchap]

Ordinary Gain isn't something you'd be able to calculate.  Since its blank on the Sales Schedule, its $0.  So on the K-1 interview, you'd enter 0 for everything.

On the 1099-B, there will be a spot in the interview where you can check a box indicating that the "cost basis provided is incorrect" and then TT will let you put in the correct basis.  You'd then use your purchase price, plus the adjustments shown on the K-1 sales schedule, to calculate the right number.

[Mike9241]

MLP reporting k-1 and 8949

Please follow these instructions. Incorrect entries can result in entering the sale twice or otherwise incorrectly. Also see the sales schedule that was included with the k-1

Enter the k-1 info
Check the PTP box
If total disposition proceed as follows:
Check final K-1 (s/b marked on actual k-1)
Check sold or otherwise disposed of entire interest
Use QuickZoom to get to the following section

On the k-1 disposition section for sales price use 0 since this was what was reported

Cost is zero
Ordinary income is 0
This info flows to form 4797 line 10 and is taxed as ordinary income.

these entries are necessary so the K-1 disappears when you roll over to 2022

Now for the 8949.
The broker’s form is probably coded as B or E – sales proceeds but not cost basis reported to the IRS. This is because the broker does not track the tax basis. It used what you paid originally which is not the correct.

The correct tax basis is:
What you paid originally, should be the same as what is on 8949,
Then there is a column on the sales schedule that says cumulative adjustment to basis. If it’s positive add it to the original cost. If it’s negative subtract the amount
The result is your corrected cost basis for form 8949.

Some other things. Look at lines 20Z1. That number should be added to the ordinary income above for reporting the 199A (qualified business income from the PTP). You don’t have to enter this but the you lose out on a tax deduction = 20% of this amount.

[LCircuit]

Thanks @Mike9241 

Regarding below -

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@Mike9241 wrote:

Some other things. Look at lines 20Z1. That number should be added to the ordinary income above for reporting the 199A (qualified business income from the PTP). You don’t have to enter this but the you lose out on a tax deduction = 20% of this amount.

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1. Which ordinary income are you referring to, the one being filled as a part of k1 sales schedule (purchase 0, sales 0, ordinary income = 0) ordinary income = 0+ 20Z1?
2. What if PTP has loss 20Z1, the negative amount reduces the refund (Compared to ordinary income being kept 0). Wouldn't 20Z1 get entered as a part of box 20 processing and accounted out there
   • Note - assuming 20Z1 = 20Z "Ordinary Business Income (Loss)" since 20Z section didnt have 20Z1 per say & just line items for
     • "Ordinary Business Income (Loss)" = -1000.00 (as example)
     • "Section 1231 Gain (Loss)" = empty
     • "Ordinary income on sale of interests" = empty