I had Magellan Midstream Partners and declined the stock offer for Oneck. I have received a broker 1099-b with the cost not reported as well as a Magellan Sales Schedule showing the adjusted cost, gain subject to ordinary income as well as Bonus Depreciation Information. Please help me with this.
You'll need to sign in or create an account to connect with an expert.
hope the following helps - total disposition only
MLP and PTP reporting k-1 and 8949/1099-B
Enter the k-1 info
Check the PTP box
If total disposition then:
Check final K-1 (s/b marked on actual k-1)
Check sold or otherwise disposed of your entire interest
On the k-1 disposition section for sales price use the ordinary income. It would be reported in box 20AB of K-1 and a column on the sales schedule. Sometimes you’ll see a column with the “751” or the words “Gain subject to recapture as ordinary income” or similar wording on the sales schedule. The following is for the k-1 sale section - not the 8949/schedule D
Sales Price = line 20AB (from the k1 which should be the same as the ordinary income column on the supplemental sale section)
* Selling expenses = 0
* Basis = 0 (zero – nothing else)
* Gain is computed and should be the same as the sales price.
* Ordinary gain = enter the same amount as the sales price
* Other lines should be zero
This amount flows to form 4797 line 10 and is taxed as ordinary income. This step is necessary, so any suspended passive losses are now allowed assuming complete disposition.
Some do not understand the above. The 1099-B (capital gain/loss portion) reporting is not done in this section in Turbotax. Doing so will result in reporting the sale twice if you enter the 1099-B info.
********
Now for the 8949/1099-B Capital gain/loss reporting:
The broker’s form is probably coded as B or E – sales proceeds but not cost basis reported to the IRS.
The correct tax basis is:
1) if your sales schedule reports the adjusted/average tax/cost basis them add the ordinary income
or
2) The sales schedule shows purchase price (usually column 4). Then there is a column that says cumulative adjustments to the basis. If it’s positive add it to the cost shown. If it’s negative subtract the amount.
Finally, add the amount of ordinary income.
The result is your corrected cost/tax basis for form 8949 – the capital gain/loss portion.
Note that on some sales schedules, there may be a column with your adjusted basis already computed. To that add the ordinary income. Read the info provided at the top of the schedule about what the columns represent.
Some other things. Look at line 20AB. 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 then you lose out on a tax deduction = 20% of this amount.
hope the following helps - total disposition only
MLP and PTP reporting k-1 and 8949/1099-B
Enter the k-1 info
Check the PTP box
If total disposition then:
Check final K-1 (s/b marked on actual k-1)
Check sold or otherwise disposed of your entire interest
On the k-1 disposition section for sales price use the ordinary income. It would be reported in box 20AB of K-1 and a column on the sales schedule. Sometimes you’ll see a column with the “751” or the words “Gain subject to recapture as ordinary income” or similar wording on the sales schedule. The following is for the k-1 sale section - not the 8949/schedule D
Sales Price = line 20AB (from the k1 which should be the same as the ordinary income column on the supplemental sale section)
* Selling expenses = 0
* Basis = 0 (zero – nothing else)
* Gain is computed and should be the same as the sales price.
* Ordinary gain = enter the same amount as the sales price
* Other lines should be zero
This amount flows to form 4797 line 10 and is taxed as ordinary income. This step is necessary, so any suspended passive losses are now allowed assuming complete disposition.
Some do not understand the above. The 1099-B (capital gain/loss portion) reporting is not done in this section in Turbotax. Doing so will result in reporting the sale twice if you enter the 1099-B info.
********
Now for the 8949/1099-B Capital gain/loss reporting:
The broker’s form is probably coded as B or E – sales proceeds but not cost basis reported to the IRS.
The correct tax basis is:
1) if your sales schedule reports the adjusted/average tax/cost basis them add the ordinary income
or
2) The sales schedule shows purchase price (usually column 4). Then there is a column that says cumulative adjustments to the basis. If it’s positive add it to the cost shown. If it’s negative subtract the amount.
Finally, add the amount of ordinary income.
The result is your corrected cost/tax basis for form 8949 – the capital gain/loss portion.
Note that on some sales schedules, there may be a column with your adjusted basis already computed. To that add the ordinary income. Read the info provided at the top of the schedule about what the columns represent.
Some other things. Look at line 20AB. 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 then you lose out on a tax deduction = 20% of this amount.
Thank you for the information. Can you please clarify the "some other things" The 20AB line does show the gain subject to recapture as ordinary income. Im not sure what needs to be done to the 199A. would you please clarify.. Once again, thank you for the help.
in step mode you'll come to a page that says 'we need some information about your 199a income)
the 751/liine 20ab amount/ is entered on the other income line and also the line below which says "total ordinary form 4797 gain (loss) included above" however checking learn more says this related to 4797 gain/losses reported on line 11 of the k-1.
i tried both ways leaving the 4797 line blank and then entering the amount. there was no effect
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
iholco
Level 1
Pam-40
Level 1
rcouto
New Member
rcerveny2002
Returning Member
Johndavid7
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.