K-1 sales worksheet reconciliation with 1099-B for PTP sale

Forum|Forum|3 years ago
March 31, 2023
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I am using TT Deluxe. I imported the 1099-B that includes a sale in 2 parts (800 units and 100 units sold). These are on a separate copy of Form 8949 (from other types of sales). I entered the K-1 according to the interview and saw nothing about how to record a sale. However, the K-1 has a Sales Worksheet where 900 units were sold (not split to 800 and 100). I asked the company how to reconcile the amount in the Sales worksheet in column 6, Average Cost Basis, with Form 8949 Column E. They said to replace 8949's column E with the K-1 value. Maybe I can follow the ratio of 8:1 to split out the single sale on the worksheet. The company rep also said to leave Form 8949 Column D as it is from the broker. From what I have read in other posts, I think I am supposed to go back to the 1099-B entry and find a place to change the value for Average Cost Basis. Will that change the 8949 value? Or do I change the 8949 value(s) in column E? The Sales worksheet also says to put column 7's Gain Subject to Recapture as ordinary income on Form 4797, Part II Line 10. There is nothing in that place now. Please help me understand how to fix this.

1099-B Energy Transfer LT transactions

Mike9241

the cost basis the broker is using is wrong. it's probably what you originally paid. to correctly report the actual gain use the sales worksheet and don't worry about 100/800 vs 900. the only thing the IRS will look for is gross proceeds you report match what the broker reports. from the sales worksheet your actual tax basis for gain or loss is column 6 + column 7. column 7 is section 751 recapture which is ordinary income (basically depreciation recapture) to report the ordinary income go into the sales section of the k-1 and for sales price enter this amount 4341 also enter this on the ordinary income line.

your actual capital loss 10636 - (8231+4341) = 10636- 12572 = (1936) if my math is right

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a) add all income items reported on every k-1 this adds to your basis

b) add all losses, deductions credits and distributions reported on every k-1 this subtracts from your basis

b) minus c) should be the -6101

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column d on 8949 is correct and should match the sales conform it's column e cost that is wrong and must be changed. only column d and not column e that is reported to the IRS so you can either change e directly or use the broker's amount and enter an adjustment of 1749 with code B (14321-12572). broker reported loss -3685 +1749 = -1936

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in TurboTax you can blank out one of the lines and just enter the totals for both on one line use various for the date acquired, the 8949 box in TurboTax would be E

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for more info read the column instructions at the top of the sales schedule.

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by the way the 4341 is additional 199A income not included in box 20z

taxquestions44Author

Thank you! If I understand correctly, I only need to change the basis on the 1099-B, which I did, and I do see the change showing up on the 8949. The rest of what you included below is for my information, not something I need to modify?

Except, it looks like I might have to do something for your statement: by the way the 4341 is additional 199A income not included in box 20z. Am I supposed to add that somewhere, like we need some information about your 199A income section, or will Turbo Tax put the 4341 where it needs to be? The only entry I have there now is the amount in 20Z that matches the Section 199A PTP Income Included on Schedule K-1, Lines 1 and 2 (really a loss).

taxquestions44Author

Further elaboration: I still have no value in Form 4797 part II line 10, which should be that 4341 below, and the adjustment on 8949 column G is 0. Both of these are tied to the Sales worksheet column 7. I did enter the Section 751 Gain with the K-1 as 20AB, which is 4341 when all 3 entities are totaled.

JamesG1

751(b) gain may be reported on IRS form 4797 part II line 10 by entering the gain in box 11 as other income (loss).

@taxquestions44

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