How I report the sale of MLP shares in Turbo Tax. I sold all shares.

[nexchap]

Importing K-1s only transfers the most basic information.  It does not do anything with the sales schedule that comes with your K-1 package.  So you still want to go through the interview, making sure that the import didn't leave anything out.  As part of that you'll handle the sales schedule, and it during that stage that you want to make sure that you make sure things are handled properly.  Also note that the 1099-B from your broker can easily be wrong, since they don't have the K-1 sales schedule information.

[flroots]

Thanks. I just completed the K-1 interview process and found a few errors and missing data.

I also set the basis equal to proceeds in form 8949, box B. Won't this be a flag to IRS with the proceeds and cost basis exactly equal? I have found no way within Turbotax to simply delete the form 8949 in question.

Finally, where do you apply the number in column 8 of the sales info (AMT gain/loss adjustment) when conducting the K-1 interview? For example is it subtracted from AMT cost basis or perhaps added to the AMT ordinary gain? Thanks again.

[nexchap]

TT2018 does not look like it addressed any of the problems addressed in this answer, so it still applies.

Setting the basis equal to the proceeds on form 8949 is not what I described in the answer above.

The AMT adjustment is an adjustment to the ordinary gain used for AMT purposes.  So if you had 100 as your normal ordinary gain, and a -10 adjustment, you'd have 90 ordinary gain for AMT purposes.

[flroots]

Thanks. OK, I adopted your way and it eliminated need to zero out capital gains from Form 1099-Bs. It just took me awhile to understand your methodology. I've now completed 2 K-1s and waiting for 2 more to be available. I think I'm now all set thanks to your considerable help.

[aws316]

@nexchap Would you mind taking a look at my post from a few days ago? Thanks for your time in responding to everyone in this long thread!

 <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4637354-received-2-k1-s-for-same-ptp-held-in-joint-account-ptp-end...>

[flroots]

@nexchap As previously mentioned, I successfully used your solution. I sold 3 MLPs during 2018 and in all cases they were short term. While reviewing the form screens I noticed that TT created a 1099-B for the last MLP entered, but did not include the other two (from same broker)? The 8949's have been updated with correct cost basis so no issues there. The 8949s rather than the 1099-Bs get filed with IRS so it's probably not an issue. I'm just wondering why this is happening.

[haha1212]

Is there anybody who could apply 20% tax deduction from "qualified publicly traded partnership (PTP) income"? I couldn't see the deduction in TT and not sure if was applied or not. I sold all portion of MLPs in 2018 and there are ordinary income which i believe part of up to 20% deduction. <a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-i...>

[renos]

Anyone else notice that 2018 K-1 sales schedules are different than prior years? Assume this has to do with the Tax Cuts and Jobs Act.  Rather than columns for Total Gain/Loss, Ordinary Gain, and Capital Gain/Loss, there is a new column called "Gain Subject to Recapture as Ordinary Income." @nexchap does this change your methodology at top (which is by far the best I've seen)?

[nexchap]

@renos:  I just double-checked my K-1's, and don't see that language.  The sales schedule still says "Ordinary Gain".  For yours, all I can suggest is to read through the Instructions that came with it to see if they're suggesting something unique.

[rolanddawson2500]

Hope this is not a duplicate comment. We did a complete sale of ETP and ETE before they folded both into the new "ET" MLP. My broker issued a 1099 showing the sale with the original basis. Using your guidance at the start, but since a complete sale of LT holdings. I took the broker 1099 (not reported to IRS) information to Zero, (with explanation "B"). I then used the corrected "Cost Basis" (ETE/ETP) had the correct original purchase price) and used this in the K1 interview form. I then used what they called "Gain Subject to Recapture as Ordinary Income" on the interview form for the "Ordinary Gain" and for the 1250 gain, the number ETE/ETP reported as "Gain subject to Recapture as Ordinary Income-Adjusted for Bonus Depreciation". (As positive numbers, since that is what they reported, AND I made the basis correction on the K1 interview form. It properly corrected on copy 3 of the 8949 Form as "F", not reported on 1099. It was additive, the ETE/ETP  basis plus recapture ordinary income was reported. The help desk at K1  for ETP/ETP was totally unhelpful, every answer was ask your CPA, if you have a correction to your SSN or name, we can help you. Any thoughts? Hope this is correct, I am going to file this weekend. Very complicated, hope the TT program puts everything in the right place!

[MLPguy1]

Nexchap - Thanks for all of the advice on this forum. I think that I understand your logic but wanted to ask you two specific questions about passive loss carryovers. First, how is the carryover calculated for the final year of an MLP holding (I sold it all in 2018) if it is not automatically pulled from last year's return via Turbotax? I don't see anywhere on my K-1 where it shows the income (loss) that reflects my multi-year holding period. I'm assuming that it is as simple as adding the Ordinary Business income from each K-1 to get a total.

In my case, I was trying to use the "This Partnership Ended" prompt in Turbotax to activate passive losses from prior years. I had $1,000 in cumulative passive losses but had a $300 ordinary gain on the sale of the MLP. When I use this methodology, it seems to over inflate my tax rebate. It adds about $200 to my rebate. This doesn't make sense to me given that I have never paid taxes on distributions from this partnership in the past. Therefore, I'm assuming that the proper way to treat this is to instead check "Disposed a portion of my interest in 2018." When I perform the latter, the ordinary gain is offset exactly by $300 in losses that shows up on Schedule E.

Any advice that you can offer is much appreciated.

[choccobo]

hello. this has been the singlemost helpful webpage for me during the past 2 years of doing my taxes.  my question today is:

do all k-1 forms where i made a complete disposition include the sales schedule at the end, where it shows my cost basis adjustment, ordinary/AMT gain, etc.?

i bought APO in 2017 and sold all of it in 2018, but the k-1 that i got this year has no such sales schedule, so i don’t really know how to calculate my cost basis.  other k-1s have always had this schedule when i sold everything.

[rolanddawson2500]

Our K1's (for 100% sales of ETE and ETP before forming into ET) had a "Sales Breakout Information" form as a separate documents in the K1 download site. It had the Cumulative Adjustments to Basis", a new cost basis, Gains Subject to Recapture as Ordinary Income, and Adjusted for recapture of bonus depreciation. I called the help desk at the K1 desk, they were not at all helpful, on either the tax implications and the TurboTax input. Her answer to every question was ask your CPA or TurboTax.

[choccobo]

thanks, ronald.  i do see that a lot of k-1s on taxpackagesupport.com have separate sales information, but some companies like APO and BX are on partnerdatalink.com, and they’re not as helpful.  but i’ll keep looking.

now, i also have to deal with ETP/EPD/ET this year.  i sold EPD first, but my ETP was converted to ET before i got rid of it.  that’ll be fun to deal with.

[aux2511]

@rolanddawson2500  Great feedback and good comment - - Ck "hassle", above and "nexchap"'s answer about "1250 gain".  "nexchap" is really appreciated.