eReit K-1: one fund merged into the 2nd fund. TurboTax asking for a lot more than what is in the K-1 package

[OmaCoder]

eReit gurus! Help please?

Turbotax questions do not align with the forms that are filed.

Perhaps none of these questions are relevant and I can just skip these since none of this is on the forms filed?

How do I describe the partnership of the dissolved fund?  (screen shot #1)

What do I choose for disposal method?  (screen shot #2)

If complete disposition, what type of disposition do I choose?  (screen shot #4)

Where would I find the purchase and sell date of this merger?  (screen shot #3)

Where can I get the regular and AMT gain or loss? I do not see this anywhere on the K-1 document?  (screen shot $5)

SEC filing link

Screen shot #1:

Screen shot #2:

Screen shot #3:

Screen shot #4:

Screen shot #5:

[nexchap]

Did you actually sell any of the shares in the dissolved fund?   Checking the "Disposed of a portion of ..." box (Screen shot 1) is what is triggering Screen shots 3, 4, and 5.  And if you did sell a some of those shares, you should have a Sales Schedule that helps answer those screens.

If you didn't actually sell -- if your first fund was simply absorbed by another partnership -- then uncheck the "Disposed box".  The partnership did end.  Screen shot 2 is fine.  And Screen shots 3, 4, and 5 will go away.

Note, though, that if you have any suspended losses from your first partnership, they'll stay suspended.  You'll want to keep track of them and make sure they get moved over to the new, merged K-1 when you're entering that.

[OmaCoder]

Thanks!! I did not actually sell anything. The 3 different eReit funds at Fundrise all merged into 1.

So actually 2 of  the funds ended.

I do still have to describe the disposition. If it ended and merged into another fund, what would I chose for the disposal?

[nexchap · Accepted solution]

'Disposition was not via a sale'.  That will mark the K-1 as 'Final' but leave the suspended losses suspended.  Then, at some point in the future when you're doing the K-1 for the merged eReit, you'll be asked about carryover suspended losses. You'd add in anything hanging around from this dead eReit, and you'll have everything taken care of from a TT perspective.

[Mike9241]

the fund should have sent you a document as to the tax consequences of the merger.  may not a disposition but they are the only ones who would have provided tax info on the merger's tax consequences since this is a private investment - not traded on an exchange.