Form 4797 & Form 6251 for K-1s

Forum|Forum|2 years ago
April 14, 2024
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I sold some units of publicly-traded partnerships. The sales schedule with the K-1s have adjustments or entries to make for forms 4797 and 6251.

For form 4797: I purchased units outright and through reinvestment. Do I need to list them separately on Form 4797. TT flowed through the amount stating "From K-1". Since I sold units of three partnerships -

(1) do I need to state the company for the K-1?

(2) do I need to separately list each purchase (outright and through reinvestment of distributions)?

For Form 6251: sales schedules show $0. Do I need to submit the form anyway?

nexchap

Form 6251 is only for AMT (alternative minimum tax). There's nothing to do for that unless TT tells you that you need to file those forms.

On the Ordinary Gain for 4797, that will transfer from the K-1 interview when you fill in the 'Enter Sale Information' part of the K-1 interview. However, there's a bug in TT, so when you make these entries be sure that the following screen, titled 'Review Investment Gain or Loss on Sale', shows 'zero' for everything. Do this by:

1) Putting the Ord Gain into the appropriate boxes. You may have different values for 'Regular' and 'AMT'

2) Put the inverse of the Ord Gain in as 'Basis' (e.g., if Ord Gain is 10, its inverse is -10)

3) Use 0 for Sale Price.

This will get Form 4797 filled out correctly.

Note that when you're done with the K-1 you'll have to go to the 1099-B provided by your broker and make any needed modifications to the basis the broker reported.

**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!

rodriguerexAuthor

Employee

Thanks. Since I sold interest in three partnerships last year, do I need to list the company on the Form 4797 or is the verbiage "From K-1" acceptible from all three partnerships?

nexchap

The "From K-1" verbiage is fine.

**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!