Question

How to enter in TurboTax "GAIN SUBJECT TO RECAPTURE AS ORDINARY INCOME" from K-1 1065 Sales Schedules/Form FORM 4797 PART II, LINE 10

Forum|Forum|5 years ago
April 16, 2021
1 reply
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Hi, I have received a Schedule K-1 1065 form and I have entered the K-1 numbers in Turbotax.

However, within the K-1 form package, there is a page called "SALES SCHEDULE" with a table, and a column called "GAIN SUBJECT TO RECAPTURE AS ORDINARY INCOME" and it says that the amount should be entered onto FORM 4797 PART II, LINE 10 and FORM 8949 COLUMN G.

How do I generate the Form 4797 with Turbotax and enter the value I have on my Sales Schedule? I have entered my K-1 info (boxes 1 to 20) but it did not generate a Form 4797.

Thank you

N

nexchap

Entering the info without winding up with duplicate 1099-Bs is tricky. This link goes into depth on different scenarios (complete vs partial sales, short vs long term) and how to get the entries right. Once done, TT will produce the 4797 and report the Ordinary Income there.

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale-of-mlp-shares-in-turbo-tax-i-sold-all-shares/00/776624

**Say "Thanks" by clicking the thumb icon in a post**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user. Use any advice accordingly!

F

Fou65000Author

Thank you so much for your response. I went through all of the 22 pages of the link you posted and I might need to go through it again as I am a novice in MLP and K-1 reporting. I actually did not know about Schedules K-1 Forms 1065 before I received some in the mail, and after I had filed my 2020 tax returns based solely on the 1099-B that I received from my broker. Now, I realized that I did not handle this the way I should and I am trying to amend my returns before the deadline.
I really appreciate all your effort in responding to everyone's personal situations with their K-1 ans Sales Schedules in the other discussion. This is immensely helpful, especially for novice investors like myself who had the misfortune to invest (even small amounts) into MLPs...

I will follow your instructions and try to amend my returns like this. Thank you!

N

nexchap

@Fou65000 You're welcome! I stumbled into the original problem (how to enter a sale without double counting) 7 years ago, thought I'd post about it once, and then the thread snow-balled. I'm glad its helping.

**Say "Thanks" by clicking the thumb icon in a post**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user. Use any advice accordingly!