K1 vs 1099B for mlp sales

Forum|Forum|5 years ago
March 23, 2021
1 reply
0 views

Hi,

I'm trying to finish up my taxes and have used the import tool to bring in my k1s. Some of my k1s have sales schedules. I do not believe that these are uploaded from the import. My questions are as follows:

1) Should I go into each k1 and add a sales schedule where applicable.

2) In the k1 entry for sales schedules (I have two I entered manually") - there doesn't appear to be the granular level detail which I'm used to. Do I need to enter 1099B's as well or can I rely up on the questions on sales in the K1 entry part to create those 1099Bs?

3) If I enter 1099B's separately for each MLP will the sales information double count if I've previously entered it in the k1 section.

4) Following successfully entering my k1s/1099B-s do I need to enter my 8949-G schedule and if so is turbotax going to recognize that the basis for sales has previously been imported or should I manually enter the basis. Won't this triple count the tax hit from my mlp profits?

Thanks.

nexchap

After importing, you're going to want to go through the full interview for each K-1 just to make sure that nothing was missed, and that any carryovers from prior years have been caught.

Entering MLP sales, without creating errors, is definitely not 'automatic' within TT. Essentially, you want to handle any Cap Gain/Loss from the sale in the 1099-B (whether imported from the broker or entered yourself), and any Ordinary Gain from the sale in the K-1 section. This thread, which has been growing over the past few years, discusses how to do it: https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale-of-mlp-shares-in-turbo-tax-i-sold-all-shares/00/776624

**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!

msg92612Author

Sorry for the late reply - I didn't receive notification that anyone had responded to this- and thanks so much for the info... Just to clarify though my question isn't on the 1099-B, it's more on the TurboTax k1 screens:

Tell us about your sale

Enter Sales Data

Enter Sales Information

Note - this is on the K1 section - not through a 1099-B form entry. It would seem to be that this information which would populate the 1099B and should be collected there - not in the K1 form- and if entered through both it would perhaps double count. I also don't see why this information is being collected on the k1 entry if it doesn't generate the necessary 1099B.

Thanks.

nexchap

@msg92612 The issue TT faces is that partnerships in general are incredibly complex, and so fully automating every scenario that could arise hasn't been done. So you get a few tools, but there are multiple ways to enter the information to get to the same answer. Unfortunately, there are also a few ways to enter the information and get the wrong answer too. So if you invest in partnerships, the key is to understand what should be making its way to your taxes, and then using TT to make that happen.

**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!