K-1 Sales Schedule / Sale of Partnership Stock

[bigblue2007]

What do I enter in the Turbo Tax screen from the K-1 Sales Schedule. Is this correct? Thanks. 

[nexchap]

That will report the Ord Income and 1250 Gain.  You still need to report the Cap Gain/Loss (in the 1099-B section) and deal with the below 0 cost basis.

[bigblue2007]

@nexchap I used the information from the brokers 1099 b for the capital gain section. Thanks. 

[nexchap]

The brokers 1099-B is unlikely to be accurate:  they don't see your K-1.  That's why col 5 shows up on your K-1.  You have to account for that $252 in your return.  You've handled $64 of that (the Ord Income).  The other $188 would typically show up as additional Cap Gain by adjusting your cost basis on the 1099-B

[bigblue2007]

Where do I enter this in turbo tax? I imported the broker 1099 b but I don’t know where to enter the 252?

[nexchap]

@bigblue2007 I'm assuming that you got 2 1099-Bs from the broker, one coded B (for short term cost not reported to IRS) and one coded E (for long term cost not reported).  When you go through the TT interview, their will be a screen for "Select any less common adjustments".  Check the "cost basis on my statement is incorrect" and enter the correct basis.  Note that 95% of the adjustments go to the long term sale, and 5% of the adjustments go to the short term sale.  But in total, the numbers you enter would add to -8 (-72+64). 

In your case, its more complicated because you can't enter -8.  So.... [what follows is not tax advice (I'm not a CPA -- just a volunteer), or legal advice, or anything the IRS would agree with.  But for most, $8 is not worth hiring a CPA or amending past years returns].... you could set the total to 0 and then go back to the K-1 interview and put $8 into the "Sales Price" box.  Dumping the $8 there will create a new 1099-B, coded F (for sales and cost not reported to IRS) for that final $8.

Final note:  I'm assuming this was a complete disposition.  If you still have shares of this, then you have to deal with the fact that your cost basis is below 0 and your K-1 reporting must change (you have to deal with the at risk rules) and you may need to amend past year's filings as well.

[bigblue2007]

Thanks for your assistance. 

this is a complete disposition.