Question

Schedule K1 entries in Turbo Tax Desktop Premier when disposing of all shares

Forum|Forum|2 years ago
March 13, 2024
1 reply
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@Rick19744 You are the expert on turbo tax based on what I have seen so really hoping you can help me.

I sold all my shares which I have purchased over several dates - this is a resulting in gain through the 1099B i received through the brokerage, however I believe I am supposed to be able to take losses (carried over the years) through the K1 form, however not very clear on what needs to be entered in TT. I've picked ended partnership through disposition of all shares but the next screen is difficult to enter.

Firstly I did two sales transactions and the purchase dates were also different, while I can enter the term various in both, it forces the gain to be a short term gain vs what it should be long term since i held these shares for several years.

secondly not sure where the following ifromation should come from - the K1 or from the 1099B??

I wish their was better support for this but it appears you've helped with this is the past so would appreciate any help you can provide.

Rick19744

Partnership tax gets complicated very quickly and TT is developed for the masses. A few follow-up questions:

Based on the current facts, I am assuming that your K-1 reflects that the partnership is a PTP?
Since this is a flow-through entity, you should be maintaining a basis schedule of your investment. Have you been maintaining your basis schedule?
If bullet #2 is "no", then the alternative would be to use your K-1 section L as your tax basis.
Assuming that your K-1 is marked "final"?
If my assumption is correct in bullet #1, then you should only be determining the gain in one place.
- My preference is to handle this in the K-1 section, which is reflected in your facts
Does the sales price you reflect in your facts agree to the distribution reflected on your K-1?
What was the K-1 activity; ie: trade or business?

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

V

vk72Author

Based on the current facts, I am assuming that your K-1 reflects that the partnership is a PTP? >> Yes
Since this is a flow-through entity, you should be maintaining a basis schedule of your investment. Have you been maintaining your basis schedule? >> I have all my K-1 since 2017 when I first bought the "EPD" through a broker.
If bullet #2 is "no", then the alternative would be to use your K-1 section L as your tax basis.
Assuming that your K-1 is marked "final"? >> Yes marked as final
If my assumption is correct in bullet #1, then you should only be determining the gain in one place.
- My preference is to handle this in the K-1 section, which is reflected in your facts >> I also received a 1099B from my online brokerage so per notes in the form section, it says to put 0 for proceeds and cost in the K-1 section)
Does the sales price you reflect in your facts agree to the distribution reflected on your K-1? >> sale price is my total proceeds from the 1099-B and partnership basis is the cost of purchase as per the 1099-B - if I put it as per the image above, it double counts the transaction, so I left it as 0 and am using the 1099-B to report it as a long term stock sale
What was the K-1 activity; ie: trade or business? >> it was EPD stock.

Also now it appears to not be recognizing my QBI deduction (Section 199A reported gain/loss) over the years and TT is just showing only last years - not sure if the QBI deduction is going to matter

Rick19744

Follow-up comments:

There is a lot going on here and it is very difficult to provide direction without the ability to see exactly what you have in front of you; but do not post any personal information on a public forum such as this.
While the notes with the 1099-B appear to be helpful, this assumes that the brokerage is reflecting an accurate tax basis which I doubt is correct. They are correct in that they are helping you only determine your gain in one place.
A key in your case is what is reflected on your K-1 Part II box L and also Part III box 19.
Sch K-1 Part II box L
- does this section reflect any distributions
- do the distributions in box L agree to box 20
- does box L "withdrawals and distributions" reflect anything other than just distributions? Sometimes there is an amount on this line to zero out this capital account section.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.