Schedule K-1 (1065)

Forum|Forum|3 years ago
March 16, 2023
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Hello,

Today March 15, I checked my mail and found Schedule K-1 (Form 1065). I already submitted my tax last month using TurboTax.

On the form 1065 Part 2, here are the lines worth noting (I basically had 40 units bought and sold on the other page).

Capital contributed during the ear: 3006

Withdrawal and distributions: (3006)

Ending capital account: 0

Part 3, boxes 1 -23, everything is either blank or zero (example box 5 where Interest income is 0).

Do I need to amend my tax? I found a some old posts stating it is not required. Can somebody confirm?

Thanks ahead,

Mike9241

that 3006 withdrawals and distributions may not represent actual distributions. it is usually a plug to zero out your capital account because you 1) sold all your units or 2) the partnership liquidated

if this was a publicly traded partnership (PTP) or master limited partnership (MLP) the sale was reported on your 1099-B. the issue is whether you reported the correct gain or not. when a PTP/MLP is sold along with the k-1 there would have been a supplemental schedule for computing your tax basis. your correct tax basis is derived from that. the broker used what you originally paid on the 1099-B. if the broker's number and the tax basis from the supplemental schedule are the same, there should be no need to amend because the k-1 had no reportable items and you reported the correct gain/loss on sale.

tractngAuthor

So I referenced my Ameritrade statements (section for 1099-B), they show a gain of $190. This was reported on Form 8949 on my submitted tax filling (with a checked on B -Short-term transactions reported on Form(s) 1099-B showing basis wasn’t reported to the IRS). I had used TurboTax Premier and used the import features for the Ameritrade statements.

So I am good without needing to amend correct?

I had read other posts where respondent mentioned that by looking at Schedule K-1 where the gain/income was zero was good enough without needing to dig deeper.