Capital gains from K-1

[stanspech]

I had shares in a partnership that I sold in 2021.  The sale shows up in a 1099 but the basis is not reported.  I also received a K-1 for these shares.  When I input the information into TurboTax, I am getting the capital gain from this sale double counted.  How do I correct this in my inputs into the software?  Should I delete the information on the sale from the 1099 and keep the information from the K-1?  It seems that this may get rid of the double counting of the gain.

[Mark N1]

The basis of your partnership is not tracked by the brokerage company, as it needs to be adjusted for income and losses passed thru to you during your ownership, this is why it is not reported on the 1099.  You need to calculate yourself by taking the original cost that you paid for the partnership interest and adjust it up or down for income and losses that were reported on your K-1's since your ownership.  Most partnerships now provide in supplementary information with the K-1 which provide the basis adjustments needed to your original purchase.

[Mike9241]

this was likle a Master Limited Partnership or Publicly Traded Partnership.

to properly report the sale and release any suspended losses. on the k-1 entries you must enter certain  disposition info using the link.

what you report on here as the sales price is any ordinary income shown on the supplementary schedule it may be labeled section 751 ordinary income

for cost use 0 (zero) on the ordinary income line enter the sales amount.  (this will eventually show up on form 4797. you do not report the capital gain/loss portion here. that's done through the brokers statement

the following should be on the supplemental schedule

a) original tax basis

b) reductions in tax basis

c) 751 ordinary income

your basis for schedule d (brokers statement reporting is a) less b) = c)