According a footnote on a K1 I received, I need to report long-term capital gains on 8949, part II, code F. Can't figure out how to do that in TurboTax...

[BigDee]

I received a K1 for our share of a limited partnership. I've entered everything into TurboTax. But in the footnote of the K1, it says this:DURING 2016, YOU RECEIVED CASH DISTRIBUTIONS IN EXCESS OF THE TAX BASIS OF YOUR PARTNERSHIP INTEREST. THIS AMOUNT IS TAXABLE AS A LONG-TERM CAPITAL GAIN, AND SHOULD BE REPORTED ON FORM 8949, PART II, CODE F OF YOUR 2016 FORM 1040.For the life of me, I can't figure out where to enter this info in Turbo Tax. I don't see a way to manually add a form 8949 and don't know what to do based on the info provided to report this as a long-term capital gain in turbo tax. Appreciate any help.

[TomYoung · Accepted solution]

You use the "Stocks, Mutual Funds, Bonds, Other" interview.  You tell TurboTax you did not receive a 1099-B.  You can use "everything else" as what you sold.  Type in an appropriate description, (e.g., Cash Distributions in Excess of Partnership Basis") and a "Date sold" of whatever distribution drove your basis "negative".  The "proceeds" would be the amount of "negative basis."

Your basis would be $0 meaning the entire amount of "proceeds/negative basis" would be taxable.  Probably the correct date to use for your purchase or acquisition would be the date of your initial contribution, but any date that made the holding "long term" would work, mechanically.

This will be recorded as a Box F sale on Form 8949.

Tom Young

[BigDee]

Thanks so much. Very helpful.

[jpreberger]

I was unable to use Turbo Tax for Form 8949.  I went to IRS website and downloaded 8949 and filled it out manually.

[BigDee]

Wow. If this is the case, I'm trying to get my head around what that means for the return I've otherwise completed in Turbo Tax - how to insert this manually and recalculate everything. There has to be a better way.

[859224]

where to enter long-term Capital gain on individual tax return

[JeffreyR77]

You can enter your long term capital gain using TurboTax Self-Employed (or Home & Business) by going to Federal, Income and Expense, Investment Income, Stocks, Mutual Funds, Bonds, Other (1099-B):

You will then be able to follow the interview prompts and you will be able to indicate long term capital gain.  Your transaction will be reported on Form 8949, Part II, Code F and Schedule D, Long Term Capital Gains.

[ake789]

you removed my new Password so fast I did not get to see what my new Password was