This is a complicated topic, but there is a lot of Q&A on this thread (https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale-of-mlp-shares-in-turbo-tax-i-sold-all-shares/00/776624) that can probably answer your questions.   In brief, though,   Q1:  you definitely want to use the info that came with the K-1, since the 1099 you received from your broker won't have accurate basis info.   Q2:  "basis is purchase amount - some adjustments (shown in K1)".  That's correct.   "What are ordinary gains?"  Your profit is your sale price less your basis.  But the IRS taxes that at two different tax rates.  A portion is "ordinary" (taxed just like income), and a portion is "capital".  So that's why your total profit is split between those buckets.  Note that on a sale, you report a) your capital gain ($4000 in your example), b) your ordinary gain ($6000 in your example), and c) some (or all) or your suspended losses (which Turbotax has been tracking and will be released to help offset some of that ordinary gain).  Don't forget about that piece.     ... View more

@devnull:  Sorry -- I'm not familiar with the intricacies of something like SVXY.  It issues a K-1 like a MLP, but beyond that I'm not sure what's the same or different.  I'd suggest posting a separate question on this. ... View more

@Boyan:  This forum hasn't been notifying me of 'mentions' or activity in the thread, so sorry about the late response.  FWIW, I haven't done much importing because a) TT's not good at matching this year's imported K-1 with last year's carryover, which is important for updating suspended losses, or in cases where the K-1 was split (e.g., for something that had entires in box 1 and 2) and b) in the case of a sale, it doesn't import the sales schedule and c) I find that I have to go through the K-1 entry by entry just to make sure everything is getting to the right place.   Manual entry does create the risk of a typo, but I just haven't found the import method reliable enough for the reasons above. ... View more

@glebedin:  Just saw this.   Yes -- 6 K1s (possibly more if any of them have more than box 1 info).    And yes -- 2 for ETP (before and after) this year.  You could actually combine them this year, but I've found it easier in TT to just leave them split for the current year.  But make a note for next year:  you'll only have the one from 2019 ET to enter, but you'll still have suspended losses from the 2018 pre-merger ETP.  So you'll make sure to add those to the suspended losses from the 2018 post-merger ETP when you enter that info into 2019, and everything will be wonderful.   And also yes -- disposition was not via a sale for the 2018 pre-merger ETP.  That leaves the suspended losses suspended, which is where they ought to be until you move them to the 2019 ETP next year. ... View more

Hi@glebedin:  Because you're a partner in ET, and ET holds stakes in 3 other partnerships (ETP, USAC, and SUN), you actually own all 4.  That's because the tax reporting "flows" to you.  So USAC reports its K-1 to ET, and ET turns around and reports it to you.  You have to file the info.   So for ETP, you can't ignore USAC.  And for ET, you can't ignore USAC or SUN.   You also can't combine these entities.  They're separate partnerships to the IRS, so losses from one can't be combined with income/losses from another.  Separate K-1s need to be filed   As to Part 2, Section L, that only applies to the "parent" partnership, and only needs to be entered there. ... View more

@Willie12 -- I think the only way that could happen is if your "Cumulative Adjustments" are more than you actually paid for the units.  And if that's that case, you probably have problems in prior year returns.   Basically, your basis in the MLP can't drop below 0.  While its above 0, you fill out your returns as normal.  But once it hits 0 (which you have to determine yourself, based on your records -- the partnership does nothing to help here), you have to fill things out differently.  And you also have to keep your own calculations on what your **bleep** Adjustments are.   This is where I suggest getting a CPA to help sort it out.  The rules are complex and require tracking both your capital as well as your share of the MLP liabilities. ... View more