ETO preferred C exchange

Forum|Forum|4 years ago
April 12, 2022
1 reply
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I held preferred for ETO Preferred C. That got exchanged into ET preferred C 1:1.

I got two K1 one for ETO preferred C and another for ET preferred C and with a transaction schedule of "Exchange"

How do i show this in Turbotax?

IS this a sale of ETO preferred C and a purchase of ET preferred C? i.e. do i need to show this as a "Sale"

If i do, then i have not got the adjusted cost basis unfortunately for ETO preferred C to calculate my correct cost basis for the same.

if this is not a sale, how do i show the two K1?

I tried to call the tax package support helpline but they are pretty useless.

nexchap

On the ETO K-1, you'd check that the "Partnership ended" (since you no longer have those preferred shares). On the next screen you'd check "Disposition was not via a sale". Doing this will allow you to enter the K-1, but it will NOT release any suspended losses. Those suspended losses have to be transferred over to the ET K-1.

On the ET K-1, you'd enter it as normal.

As for transferring the suspended losses from ETO to ET, what I've done is just wait until next year. When you get to the screen concerning Carryovers you can edit the boxes to be the sum of the 2021 ETO and the 2021 ET K-1s.

**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!

dalboyAuthor

Thanks. So I don’t have to “sell” which is good. The cost basis of my new shares will be tricky won’t it? Or I just wait for ET schedule to come out when I sell those shares some time later?

nexchap

@dalboy The cost basis for the ETO shares simply transfers to the ET shares. You'll still track your purchase price for ETO, and adjust it for whatever the ET K-1 gives you at time of sale.

**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!