K1 question

[Gettingitdone]

I bought shares of a publicly traded partnership in 2024 and sold them in 2024.    This was reported by my brokerage on 1099 short term, basis not reported to irs.  I just received the K1.   The K1 is marked as final and Part 3 is blank except for the sales price of my sharesin box 19a.  Is this appropriate? I thought 19a was for items affecting the basis. 

[Mike9241]

the 1099-B does not reflect the correct tax basis because the broker does not get the k-1 and therefore can't adjust your basis for the partnership activity. All I have ever seen on the 1099-B is the original tax basis (what you paid). In the k-1 package there should be a supplemental sales schedule which should provide all the info needed to correctly report gain/loss on sale including any section 751 recapture also reported on line 20AB, if any.  

another way to figure you correct tax basis is from schedule L of the k-1

capital contributed should be what you paid

+ current year income - current year loss

- line 19a withdrawals and distributions

+ the amount, if any, from 20AB

this is reported on the 1099B/8949 not in the sales section of the k-1. type B proceeds but not tax basis reported to the iRS

only the amount on 20AB,if any,  is reported as ordinary income through the k-1 sales section

[Gettingitdone]

I bought and sold all the stock in 2024 and received a final K1.  The only sections filled were section L and 19a.  The numbers are as follows:

K1 section L

Beginning capital account : blank

capital contributed during the year: 6300

current year net income (loss): blank

other increase (decrease): (1119)

withdrawals and contributions: (5181)

K1 section 19a distributions: 5181

Do I report on the 8949 what is on the 1099b- a basis of 6300, a sales price of 5181 and a loss of 1119?  And can I skip thevK1 section in turbotax?

[Mike9241]

can't really say. distribution 19a seems strange. Did you actually get a cash distribution of $5181? something may have happen to the partnership such as it converting to a corporation and what is the 1119 other increase/decrease.

if you provide the name of the publicly traded partnership perhaps, I can provide more info. 

[Mike9241]

if what you say is correct, then don't even bother entering the k-1 because everything on it will be zero. the 1099-B should reflect the purchase and sale using the numbers resulting in the $1000+ capital loss. you do not report the sale on the k-1 because it will be miscoded as to type and is already on the 1099-B so you would end up double reporting.