Plethora of K-1 Questions and Forms really necessary?

[Lonestar]

So... I made a pass through everything in TT and my Review came back with no errors. As always, I make a couple more detailed passes through myself to recheck things.

I have a K-1 that is not qualified. The first time through I entered the K-1 form info, and as stated my Review was fine. The second time through, after clicking Update, I guess hit Edit and then started answering questions and it's asking me tons of detailed questions that I didn't see the first time through. Some or most are already in the K-1. It's like it's asking me what's in each box of the K-1 in a question format. There's also pages after the K-1 in the Forms, that have yellow highlights, like something needs to be filled in, potentially. 

Is it really necessary to go through page after page of detailed information when the K-1 (page 1 at least) is already filled out? It gets quite complicated.

This screen shot is the first one that to me isn't clear, as the wording isn't the same as on the K-1 for the values that are there... and it gets worse with every question after that. My point is, it seems to be repetitious to the simple K-1 information and since it passed the Review before, I feel like I'm going through something not necessary. Thoughts? I'm going to tell my broker to stop buying into Partnerships... lol

BTW, after answering some of the questions, it changed the amount of my refund. This is what makes me wonder what is going on. Sorry for rambling.

[Mike9241 · Accepted solution]

BONG. That's the wrong place to enter the sale of the PTP.  It should be reported on Form 8949 using the sales schedule that was provided with the K-1 to figure your actual tax basis. It's not what's on the 1099-B. This is because the broker does not get the K-1 and so never updates the basis for the activity

in the section you're presenting, the sales price is the section 751 gain, if any,  reported in the sales schedule and line 20AB of the K-1.  The basis is always zero. If there is no 751 gain, enter the sales price as zero. 

A sale of a PTP should not produce any ordinary gain or loss except for any section 751 gain. It's like selling a stock. The gain or loss is capital, and probably, except for the wrong basis, already on the 1099-B 

entry of this if is necessary, so any suspended losses are released and the K-1 worksheet will not be present when you do 2026 (unless this was only a partial disposition)  

[Lonestar]

Sorry... I had typed out a response several days ago and didn't send it and have since been distracted. 

First of all, I use the questionnaire mostly, so it will put stuff wherever it does. I don't recall entering anything on a 8949 directly. If by reported on the 8949 you mean somehow it magically appears there (imported), then OK, but read on.

So, when I look at the 8949 form(s)... there are two, I see one of the proceeds for one non-qualified K-1 'account'. I have two K-1s Qualified accounts that are not on the 8949, but I understand they won't show up or won't be filed, for obvious reasons.

Now for the fun part.. I guess I had somehow filled out a K-1 through the questionnaire for a second non-Q K-1 and it DOES NOT show up in either of the 8949 forms. So, I have one visible in a K-1 form but not on the 8949 and one without a K-1 that does show up on the 8949. Arrgh... The one with the K-1 is the reason I started this post, I guess, due to the plethora of questions it was asking. 

I guess the one on the 8949 was possibly imported. (?) Makes me wonder why the other one didn't get imported. It was dissolved.. for a loss, and it's the one that has a K-1 filled out. How do I get it over to the 8949?

I hope most of that makes sense... I'm very open to more suggestions. 

[Lonestar]

Honestly, you're talking a bit over my head, especially about the 751 jargon. 🙂

[PatriciaV]

The sale of a PTP is a complicated entry that requires several forms and some manual calculations. See this article for a detailed explanation: How do I report the sale of Publicly Traded Partnerships (PTPs) or Master Limited Partnerships (MLPs...

If you feel this is beyond your comfort zone, you might consider upgrading to TurboTax Experts. This online service provides step-by-step guidance from a tax expert whenever you need assistance.

@Lonestar 

[Lonestar]

Some clarification... 
Although one of the Investments, US Nat Gas Fund LP, is listed on one of the 8949s, the Proceeds and Cost Basis is different than what is on the K-1 I received got from the company... from Tax Package Support.  

[Lonestar]

Might not be a bad idea. Thanks.

[Lonestar]

OK, thanks to those who responded and offered input. I finally decided to just take a deep breath and work through transferring the K-1 information I got to the K-1 forms in TT. Answered whatever questions came up, some on some rather obscure points. Nevertheless, I finished and my Review showed no errors, so I submitted it. I suppose time will tell if there is an issue with the 8949s. 😑