Received 1099-B and K-1 for the same sale, results in double tax
Hi,
I
One with BOX B Checked
One with Box C checked
Can someone guide me on how to avoid double tax in this scenario?
Hi,
I
One with BOX B Checked
One with Box C checked
Can someone guide me on how to avoid double tax in this scenario?
The broker reports the sale as if the investment was not a PTP. In order to prevent the double taxation, the sale reported on the 1099-B needs to be adjusted. I recommend you adjust the cost basis so that it equals the proceeds. There will be no gain or loss on that transaction, but the reported amounts will agree with amounts reported to IRS.
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