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October 24, 2024
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Stock sales k-1 - broker cost incorrect and ‘nor reported to IRS’ k-1 stock sales has correct cost basis,adjustments and gives where to enter this information.How to do this on TurboTax home and business desktop is my question

  • October 24, 2024
  • 1 reply
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    Best answer by Mike9241

    if you completely disposed of your interest in a fully taxable transaction then the the K-1 should be indicated as final and you need to if its a PTP ( BOX D) then check that box

    check complete disposition and on the link in the k-1 to report disposition. if there is section 751 recapture (would be on the k-1 supplemental worksheet and also 20AB on the k-1) you indicate this as the sales price and ordinary gain. that's all for the k-1 reporting of the sale on the k-1 part.

     

    next is the 8949 reporting.

    to your computed adjusted basis add the 751 gain, if any. the total will be your revised tax basis.

     

    one additional thing, for the potential QBI deduction. the 751 gain, if any, is additional QBI income enter on the 4797 line in the QBI section of the k-1

    1 reply

    Mike9241Answer
    October 24, 2024

    if you completely disposed of your interest in a fully taxable transaction then the the K-1 should be indicated as final and you need to if its a PTP ( BOX D) then check that box

    check complete disposition and on the link in the k-1 to report disposition. if there is section 751 recapture (would be on the k-1 supplemental worksheet and also 20AB on the k-1) you indicate this as the sales price and ordinary gain. that's all for the k-1 reporting of the sale on the k-1 part.

     

    next is the 8949 reporting.

    to your computed adjusted basis add the 751 gain, if any. the total will be your revised tax basis.

     

    one additional thing, for the potential QBI deduction. the 751 gain, if any, is additional QBI income enter on the 4797 line in the QBI section of the k-1