K1 Sales Information

[MLPK1]

Hello,

I am concerned about double reporting income and/or not reporting it correctly. This is for a return I did last year that I am now questioning the accuracy of. I am attaching the relevant parts of the 8949, 4797, and K-1 forms. The 8949 I believe to be based on the 1099B and I think I definitely have an issue with the cost basis at a minimum. The rest is based on what I entered on the K-1 Sales Information part. This was a complete dissolution of Magellan, if that helps. I am questioning this as I fill out this year's taxes and seem to be getting different answers in my search.

Thanks in advance for any advice.

[MLPK1]

Apparently, the K-1 picture did not upload, so here it is.

[Mike9241 · Accepted solution]

The 2154 on the 4797 is correct.

For schedule D, your basis based on the sale schedule would be 29313+2154=31467 You used 31514; that could be an adjustment for non-deductible Excess Business Interest Expense reported on 13K, or perhaps you used the cost on the 1099-B, which is almost always wrong when dealing with an MLP/PTP .

[MLPK1]

Thank you for the quick response - it is good to know that it is mostly correct. The 31514 is from the 1099-B - how do I fix that? 

I did previously try to do the following and my tax jumped up over $1500. It looked like it would do what you were saying but it most definitely did not. Can you help me understand what is going on? Would this be taxing me twice because it was already reported on the 1099-B?

Thank you again.

[MLPK1]

I found where to fix the cost basis on TurboTax, so that is now fine. I owe another $9. I hope you don't mind answering a few more questions - I would greatly appreciate it, if you can.

1. Does what you describe above for a complete sale also work for partial sales? I had a few partial sales of different MLP's for this year.

2. Energy Transfer is very complicated, it appears. I ended up doing five K-1's for that alone, based on recommendations here and in TurboTax. One for ET (Bus), one for ET (Real Est), one for Sun (Bus), one for Sun (Real Est) and one for USAC (Bus). My question, is can I do all the sales information for just one of them (ET (Bus))? They don't break it up on the sales schedule. 

3. Form 8990. Apparently TurboTax does not handle this. Two of the MLP's have $0 for Box 13 Code K so I assume I do not need them, but ET has $778 for Box 13 Code K. How do I handle this?

I apologize for all the questions - thank you again.