Sale of PTP 199A and 751 reporting

The section 751 gain that resulted is reported in box 20AB: $6520. It corresponds to the ordinary gain amount shown on the sales schedule, which states "this amount is considered qualifying PTP income for Sec. 199A"

 

The supplemental statement that lists all the different box 20 items shows "box 20Z: Section 199A Publicly Traded Partnership (PTP) Income: $-40",

 

you should come to a page that says "enter sales information" the sales price is entered as the amount of the 751 gain $6520, partnership basis 0, ordinary gain same as sales price. use the same $ for AMT. this transfers the gain to where it's supposed to go on form 4797

don't bother entering 20Z or 20AB. Turbotax does not use these entries

continue on until you come to a page that says "We need some information about your 199A income"

enter the 20Z amount on the line that says "ordinary business income or (loss)"

enter the 20AB amount on the line that says "other income (loss)"

 

That's it for QBI

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Second issue, I have another MLP that I still own that reported box 20Z amount of -$280, but it does not correspond to the box 1 amount which is -$30, and like the other MLP, it's supplemental statement does not spell out where to put this amount. The only thing it shows is "Section 199A Publicly Traded Partnership (PTP) Income". The amounts on the k1 are:

box 1 Ordinary business income (loss): -$30

box 5 interest income: $20

box 9a long term capital gain: $10

box 10 section 1231 gain: $60

 

 Any idea where  I should put the box 20Z amount on the "We need some information about your 199a income" screen?

box 5, 9a and 10 by definition are not qbi

I have never seen in a PTP where 20Z and totals of lines 1,2 and 3 differ

you can contact the partnership about the difference for an explanation. maybe it's right.

if you did not sell this PTP the QBI loss is not used in the current year QBI computation. it will carry forward until either the partnership generates income or you dispose of it.

your other option is to use the 20Z info as given see above for entry. 

 

Thanks @Mike9241.  Indeed, it does not match box 1, 2, or 3. However, box 20N is a positive $280, whereas 20Z is negative $280. Does that provide any insight? Taxpackagesupport was unable to explain the reasoning of the differing amounts. 

@Mike9241

 

This is off this topic but I thought this was the easiest way to ask you if TT 2023 has fixed the work around you so elegantly described for sale of MLPs?

 

There is a box for "ordinary Gain" when "entering Sale Information" that seems to zero out the capital gains when I use Ordinary gain number for sale and zero for cost basis

 

Should I use the correct numbers for Cost basis including the Adjustment?

 

Thanks

I appreciate your time answering my questions @Mike9241 , but I found another post from @nexchap who says to combine the 20z and 20ab amounts and put them on the ordinary business income line, and also put the 20ab amount on the line for "ordinary form 4797 income included above".

 

Who is correct, or are both correct and you get the same result in a round about way? 

@Andybill If you look at the forms, section D2 populates the same way whether you combine or split.  But its probably cleaner to split them as described by Mike

@nexchap @Mike9241 

I noticed that Section 751 income doesn’t appear anywhere in the 199A worksheet in Turbotax.  Is this an oversight?  You’re able to enter it in the Box 20 information section, but it doesn’t appear to do anything with it.  It doesn’t show up in the QBI deduction worksheet or the Statement A worksheet, or anywhere else that I can see.  It’s like the number just disappears.  Has anyone else noticed this?

 

So, how should we get credit for the 751 income for 199A purposes?  Should we add it on to the Ordinary Business Income line in the 199A worksheet as a workaround?