I received a K-1 Form 1065 for Stock I Purchased Thru Online Broker

[FederalInquirer]

Hello!

I purchased thru online broker E-Trade.com shares of a company that is a Limited Partnership, and I'm getting a K-1 Form 1065 directly from the company. I never received such a form before from any other company, I usually get all my tax filing information in a consolidated statement from E-Trade. Why is the company sending that directly? What could be different?

Thank you in advance

Sincerely,

Nick

[bclee]

The K-1 is typically used for partnerships, trusts, and few other types of entities.  The income is passed through to you along with the tax liability.  Summary at https://www.investopedia.com/ask/answers/09/k-1-tax-form.asp .  Sometimes they can be a pain to figure out because the nomenclature of certain items like in depreciation don't match what the tax form refers to and TT has had a longtime deficit in the ability to explain these. 
But most of the box items do match for the simpler K-1s and you just plug in the info where TT indicates starting under Personal income, Business Investment and Estate/Trust Income (TT-H&B).  Yes, it would be easier if these could be downloaded into TT so one wouldn't have to twiddle with all the box info.

[AnnetteB6 · Accepted solution]

You are getting the K-1 directly from the Limited Partnership because you have purchased shares in the limited partnership and you are now a partner.  As a partner, the company is required to provide you with a K-1 showing your share of the income and expenses of the business.  

You may also see information reported on your E-Trade consolidated 1099 with regard to the company.  

Both the K-1 and any information on the consolidated 1099 must be reported as part of your tax return.

@FederalInquirer 

[Mike9241]

you did not buy a shares of a corporation. you bought units of a partnership though it's traded on a stock exchange and therefore you report your pro-rata share of partnership items as reported on the k-1. you will receive a k-1 every year including the year of sale. in the year of sale post back because you  will most likely need help in properly reporting thee disposition. you need your adjusted tax basis which the broker does not have. the 1099-B will report as cost what you paid originally but will not report this to the iRS. 

[FederalInquirer]

Thank you all, because everything you explained to me, helped me figure out the pieces of this puzzle

Sincerely appreciated,

Nick