I bought shares of a publicly traded partnership in 2024 and sold them in 2024. This was reported by my brokerage on 1099 short term, basis not reported to irs. I just received the K1. The K1 is marked as final and Part 3 is blank except for the sales price of my sharesin box 19a. Is this appropriate? I thought 19a was for items affecting the basis.
the 1099-B does not reflect the correct tax basis because the broker does not get the k-1 and therefore can't adjust your basis for the partnership activity. All I have ever seen on the 1099-B is the original tax basis (what you paid). In the k-1 package there should be a supplemental sales schedule which should provide all the info needed to correctly report gain/loss on sale including any section 751 recapture also reported on line 20AB, if any.
another way to figure you correct tax basis is from schedule L of the k-1
capital contributed should be what you paid
+ current year income - current year loss
- line 19a withdrawals and distributions
+ the amount, if any, from 20AB
this is reported on the 1099B/8949 not in the sales section of the k-1. type B proceeds but not tax basis reported to the iRS
only the amount on 20AB,if any, is reported as ordinary income through the k-1 sales section
I bought and sold all the stock in 2024 and received a final K1. The only sections filled were section L and 19a. The numbers are as follows:
K1 section L
Beginning capital account : blank
capital contributed during the year: 6300
current year net income (loss): blank
other increase (decrease): (1119)
withdrawals and contributions: (5181)
K1 section 19a distributions: 5181
Do I report on the 8949 what is on the 1099b- a basis of 6300, a sales price of 5181 and a loss of 1119? And can I skip thevK1 section in turbotax?
can't really say. distribution 19a seems strange. Did you actually get a cash distribution of $5181? something may have happen to the partnership such as it converting to a corporation and what is the 1119 other increase/decrease.
if you provide the name of the publicly traded partnership perhaps, I can provide more info.
if what you say is correct, then don't even bother entering the k-1 because everything on it will be zero. the 1099-B should reflect the purchase and sale using the numbers resulting in the $1000+ capital loss. you do not report the sale on the k-1 because it will be miscoded as to type and is already on the 1099-B so you would end up double reporting.