How do I report the sale of my partnership interest?

Forum|Forum|2 years ago
March 16, 2024
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Reference: https://ttlc.intuit.com/community/business-taxes/discussion/re-do-i-report-the-sale-of-partnership-stock-k1-sold-all-shares-if-it-was-reported-as-a-profit/01/3095731

That answer said I could "Check final K-1 (s/b marked on actual k-1)". However, I cannot find that option. I have sold my shares in the Partnership, but the Partnership is not being closed. The only option available is "This S-Corporation Ended". Will I get into trouble if i select that option? How do I handle the proceeds from the sale of my shares?

Best answer by PatriciaV

You are in the right place. In the initial questions for entering Schedule K-1 look for the page "Describe the Partnership." To report that you received a final K-1, check the box for "This partnership ended in 20XX." Even though the partnership itself didn't dissolve, your investment ended.

Under "Describe Partnership Disposal," check the box for "Complete disposition."
Under "Tell Us About Your Sale," check the box for "Sold Partnership Interest."
Enter the sale information on the next pages. You need to know your partnership basis in order to complete this section.
Continue to the end and TurboTax will show if you had a gain or loss on the sale.

This gain or loss is reported as Investment Income on Schedule D.

PatriciaVAnswer

Employee

Under "Describe Partnership Disposal," check the box for "Complete disposition."
Under "Tell Us About Your Sale," check the box for "Sold Partnership Interest."
Enter the sale information on the next pages. You need to know your partnership basis in order to complete this section.
Continue to the end and TurboTax will show if you had a gain or loss on the sale.

This gain or loss is reported as Investment Income on Schedule D.

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andyvu2002

Hello Expert hope you can give me some advice!

I own some share of limited partnership and they provide me K-1 to fill out every year.

, my partnership ended in 2023 when I fill out the tax return. I select the "complete disposition" option.

and enter the purchase date and sale date, the next section is entering sale information.

I enter sale price. which is $12,500.0

but I am confused on the partnership basis box.

on the sale sheet it gives me 2 options

1 -(purchase price/initial basic amount) @9379$ (this is what I paid to purchase these shares originally)

2- cost basic $7463

which one is the correct on to fill out on section partnership basis box 1 or 2

thank you.

PatriciaV

Employee

Use your adjusted cost basis. The original purchase price was the starting point. But your cost basis is adjusted for income allocations, distributions, and other transactions since you purchased the investment. It's not unusual for your cost basis to go down if 1) the company didn't report a profit every year or 2) you received cash or property distributions in any year.

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