I am not sure how to enter partnership sale info and k1 info

[seccam]

I have question about K1 - Holly energy partnership.

I sold all units so I have zero balance as of end of 2022.

Now when I am trying to enter info in TT premier 

I am choosing check box this is publicly traded partnership

This partnership ended in 2022.

than choosing complete disposal.

sold partnership interest

than it is asking purchase date - WHERE DO IN FIND THIS DATE AND WHAT IF I PURCHASED ON DIFFERENT DATES?

Can I leave purchase date blank and only enter sale date - I received sales schedule along with k1 - so I know sale date from that but no purchase date.

Further it ask to enter sale info 

and asking for sale price and partnership basis - what do I enter there ..?

it is asking me to enter purchase date - I received k1 from Holly and sales schedule but it does not show purchase date so how do I find it and if I can not find it - can I leave it blank?

I have the same situation form enterprise products partners  

[Mike9241]

MLP and PTP reporting k-1 and 8949

Please follow these instructions. Incorrect entries can result in entering the sale twice or otherwise incorrectly reporting the transaction. Also see the sales schedule that was included with the k-1.

Enter the k-1 info
Check the PTP box
If total disposition proceed as follows:
Check final K-1 (s/b marked on actual k-1)
Check sold or otherwise disposed of entire interest

On the k-1 disposition section for sales price use the ordinary income (sometimes you’ll see a column with the “751” or the words “Gain subject to recapture as ordinary income” or similar wording. This info comes from the supplemental sales schedule that should have been provided. It’s also now on the k-1 box 20AB - no 20AB, no ordinary income column then then sales price is zero. The numbers I’m using represent the line numbers in forms mode (desktop only)
5. Sales Price = line 20AB (1065 k1)
6. Selling expenses = 0
7. Basis = 0
8. Gain is computed and should be same as the sales price.
9. Ordinary gain = enter same as sales price
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.
10,11,12 should be blank

Now for the 8949.
The broker’s form is probably coded as B or E – sales proceeds but not cost basis reported to the IRS. This is because the broker does not track the tax basis. It used what you paid originally which is not correct.

The correct tax basis is:
What you paid originally, should be the same as what is on 1099-B as cost,
Then there is a column on the sales schedule that says cumulative adjustment to basis. If it’s positive add it to the original cost. If it’s negative subtract the amount.
Finally add the amount of ordinary income reported above, if any.
The result is your corrected tax basis for form 8949.

Some other things. Look at lines 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.

[Mike9241]

MLP and PTP reporting k-1 and 8949

Please follow these instructions. Incorrect entries can result in entering the sale twice or otherwise incorrectly reporting the transaction. Also see the sales schedule that was included with the k-1.

Enter the k-1 info
Check the PTP box
If total disposition proceed as follows:
Check final K-1 (s/b marked on actual k-1)
Check sold or otherwise disposed of entire interest

On the k-1 disposition section for sales price use the ordinary income (sometimes you’ll see a column with the “751” or the words “Gain subject to recapture as ordinary income” or similar wording. This info comes from the supplemental sales schedule that should have been provided. It’s also now on the k-1 box 20AB - no 20AB, no ordinary income column then then sales price is zero. The numbers I’m using represent the line numbers in forms mode (desktop only)
5. Sales Price = line 20AB (1065 k1)
6. Selling expenses = 0
7. Basis = 0
8. Gain is computed and should be same as the sales price.
9. Ordinary gain = enter same as sales price
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.
10,11,12 should be blank

Now for the 8949.
The broker’s form is probably coded as B or E – sales proceeds but not cost basis reported to the IRS. This is because the broker does not track the tax basis. It used what you paid originally which is not correct.

The correct tax basis is:
What you paid originally, should be the same as what is on 1099-B as cost,
Then there is a column on the sales schedule that says cumulative adjustment to basis. If it’s positive add it to the original cost. If it’s negative subtract the amount.
Finally add the amount of ordinary income reported above, if any.
The result is your corrected tax basis for form 8949.

Some other things. Look at lines 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.

[seccam]

@tagteam What is PTP box and where do I find that?

What do you mean by -- Check final K-1 (s/b marked on actual k-1)?

If you can provide any video or flow chart with images - it will greatly help.

I am more confused because on broker statement both partnership (holly and enterprise) have short term and long term reporting.

Sale date was same but purchase date was different so it divides in to 2 sections ..long term reported and short term reported.

By the way on my broker 1099 B (robin hood) There are 3 separate 1099B 

1. Short term reported - covered

2. long term reported -covered 

3. BOX C - not reported 

So please correct me if am wrong - 

*For the first 2 - I am submitting summary instead individual tx  - so please confirm I dont have to mail anything to IRS since its already reported and covered correct?

*For 2 transactions which have box C - am manually entering those 2 transactions instead summary - do I still need mail 1099-B to IRS ?

[tagteam]

The PTP box is in the K-1 (1065) section of the program. I will also page @Mike9241 

[Mike9241]

that supplemental sales schedule should have a breakdown of long-term vs short-term. sometimes its a % sometimes there's a line for short-term and a line for long-term

[seccam]

@Mike9241  @tagteam 

Hello Mike and tagteam - can you please respond

Yes I got sales sch along with K1. But obviously I don't really comprehend everything that is why asking you to avoid mistakes.

Let me go step by step 

1. Under describe partnership - I have checked 2 boxes - PTP and 'this partnership ended in 2022' (because I sold all units) - Please check attached screenshot 1.

2. Describe partnership disposal - checked complete disposal - screenshot 2

3. What type of disposition was this -- sold partnership interest

4. Enter purchase and Sales date - Here am not sure what to enter as purchase date  because as per my tax statement it shows 3 different dates for short term and 3 different purchase date for long term so what do I enter as purchase date? Sales date was same for all those 6 transactions. - image 4

I can not upload more images in this post so I have to submit more images via another reply.

Thanks.

[seccam]

@tagteam @Mike9241 

5. Enter sale info - image 5 - on this page I have no clue what to enter . - Please check attached sales schedule and  k1 from Holly energy  and advise 

[Mike9241]

in the section of the k-1 where you enter the acquisition and disposal dates the acquisition date doesn't matter because only the ordinary income recapture is entered here so dates have no effect on taxability

the gain or loss on sale after adjustment of your tax basis as per the supplemental schedule only goes on the 8949.

so compute you gain on all shares and multiply this by the long-term % if each lot is not detailed in the schedule

on one line enter the proceeds from the long-term shares.  you have calculated the long- term portion of gain or loss so you compute basis by the difference this is coded as type E  - proceeds but not basis reported to the IRS (if multiple acquisition dates use the latest for these lots)

on another line do the same for short term but the type is C.

[seccam]

@Mike9241  @tagteam Would you mind looking at Sales sch and K1 I have uploaded and advise on what to enter on 

1. 'ENTER SALE INFORMATION' page?

I really don't understand what you are trying to explain so ...please look at those attachments I have uploaded.

2. On K-1 -  box 16 - SCH k-3 is attached if checked is CHECKED but I never got k-3 and I tried to download from https://www.taxpackagesupport.com/ but I am getting errors so what should I do ?

at the same time I am reading K3 is not required (even if its checked) if company have no foreign income or tax ...please correct me if am wrong.

3.  I sold everything - so what should I check mark ? (I think I know the answer but confirming)

All investment in partnership at risk or Some investment in partnership is not at risk  

I am trying to get attention from more contributors because I think you are too busy to give more time.

@VolvoGirl @xmasbaby0 @DoninGA @Critter-3 @NCperson @Opus 17 

[seccam]

Hello,

No one has time to clarify you confusion?