Help filling out Sale Information for Final K-1

Forum|Forum|1 year ago
March 16, 2025
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@Rick19744 I noticed that you have answered various questions on K-1s, so hoping you (or someone) can help me! I tried asking this question yesterday, along with photos of my forms, but nobody has answered, so I'm trying again.

Background: We received a Final K-1 because we bought and sold stock in a publicly traded company (short term capital loss for 2024). When entering this K-1, I answered the TT questions as follows:

- This is a publicly traded partnership AND This partnership ended in 2024.

- Partnership Disposal: Complete disposition

- Sold Partnership Interest

Here is my K-1, and Sales Schedule information (I hope this is legible):

I then get a screen for 'Enter Sale Information'.

My question is - How do I fill this out?

Regular Gain or Loss

Sale Price: From looking at other posts about this, it sounds like I should put 3602 here. This is equivalent to 20AB Section 751 Gain. Do I ignore K-1 Box 1 of -1964 (Ordinary business income/loss)? And what about the actual sales proceeds of this stock, which was reported on my 1099B?

Selling Expense: From other posts, this should be 0?

Partnership Basis: Should this be the sum of column 7 in the Sales Schedule (Total Adjusted Cost Basis): 56806; Another post suggested this should be 0?

Ordinary Gain: This is 3602 (Section 751 Gain) if I put 3602 as Sales Price and Selling Expense and Partnership Basis are both 0.

1250 Gain: Leave this blank? I don't see any references to 1250 Gain anywhere

AMT Gain or Loss section should be SAME as Regular Gain or Loss?

I'd appreciate any help/advice...thank you!

Rick19744

Employee

Before I provide any additional details, did you receive any proceeds upon selling this PTP?

Appears you did as you indicate you received a 1099-B.

*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.

mellynleeAuthor

Hello,

Yes, as reported on our 1099-B, our proceeds from the sale of this stock was: 55841

However, our 1099-B cost basis was: 59060 (also shown in K-1 section L Beginning capital account)

Which gave us a short term loss of: 3219

Rick19744

Employee

Got it.

Just enter the K-1 information as you normally would
Make sure you indicate PTP and final; which it appears you have done
Make sure you don't double up on the disposition component
When entering the K-1 information, since you indicated you sold the units, there will be questions regarding your cost basis and selling price.
- Your cost basis is what is indicated on the K-1; $56,806
- The 1099-B hasn't taken into account the current year activity which impacts your cost basis
- Then the selling price is the $55,841
When entering the above, this will provide an ordinary loss of the $2,254 from the K-1 items and then a short term capital loss of $965. As a result you end up in the same place ($-3,219) except for the character of the items; which is to your advantage.
As a result of entering this information in the K-1 section, you will need to make some adjustments on form 8949.
- To avoid a matching issue on the 1099-B, enter the amounts as reflected, except you will need to make an adjustment to zero out the K-1; since it is being reported from input in the K-1 section.
- Form 8949 column f should reflect code B.
- I'm not sure if your 1099-B indicates the cost basis was reported to the IRS. As a result, column e and g need to be adjusted accordingly.
- The goal when entering the 1099-B information is to arrive at zero gain or loss since the loss will already be reported by TT from the K-1 section.
At the end of the input, the 1099-B gain or loss should be zero and the K-1 input should flow and result in a $965 short term capital loss.
The remaining $2,254 loss amount will be reported in various sections of the tax return.