K-1 for exited PTP

Forum|Forum|3 years ago
April 18, 2023
1 reply
0 views

I have a K-1 for a PTP that I disposed of last year. I have a Section 751 Gain (ordinary income) per the Sales Schedule attached to the K-1. I determined where the TurboTax interview requires that information. For some reason, TT is creating a 1099B with box C checked rather than using that number in Schedule E. Is this right? I already have the 1099-B from the brokerage firm (with box B marked) for which I have adjusted the basis to reflect the Sale Schedule basis. Is this double counting?

hbl3973

Employee

Not my forte, but looking at https://pro.bloombergtax.com/portfolio/partnership-transactions-section-751-property-portfolio-720/ it would appear that TurboTax is treating it as 751(b) rather than 751(a). I would look at the details on your K-1(1065) to see where they say to report that income and adjust your return accordingly.