I was wondering if someone can help me fill out my K1 “Sale” properly. Alot of confusing information out there and im not a tax expert by any means.
In dec 23 i had a K1 LP (Holly Energy Partners) that was bought by another company and i was compensated in stock and cash. I received both a 1099-B from fidelity and K1 sales Schedule. Between all the different numbers i have no clue where to start.
First: i put that the partnership ended in 2023 and that it was as a complete disposition of the K1. instead of disposition was not via sale, sold and am receiving payments and no entry. Please let me know if that is correct?
Next i put sold partnership interest instead of abandoned, liquidated or transferred. Im pretty sure that is correct.
Next (picture attached) is the sale information which i am really struggling with.
Sale Price: pretty sure about this 22308 was confirmed by fidelity and by adding stock/cash per share.
Selling expense: didnt see anything about that so assuming 0
Partnership basis: i got a bunch of possible numbers.
Fidelity account says cost basis was 28793.90
fidelity 1099 says cost basis was 27378.58
K1 says: initial basis was 27758. but it also has a cumulative adjustment to basis (idk what this means) of -23067 -> leading to a cost basis of 4691 . see attached K1 sales schedule
both the 1099 and K1 says use their value for Form 8949 Box E
Which one am I supposed to put in there for partnership basis?
Ordinary Gain: another one im struggling with
Using K1 sales (see attached) schedule shows this number as 12576 (in gain subject to recapture as ordinary income). Next column shows amt gain/loss adjustment as -2271. I entered them as seen in picture. The most important part and confusion part is the instructions listed to column 7; see below. See bold line
“Column 7:The instructions to Form 8949 are unclear as to the determination of capital gains where total gain on the sale of units is partially ordinary gain. Reporting this amount as a negative adjustment in Column G of Form 8949 should generally result in the correct capital gain or loss. The amount reported as ordinary gain is qualified publicly traded partnership income for purposes of Section 199A and has not been included in the amount reported on Schedule K-1, Line 20Z”
Does that mean i enter this number as a negative? Anyone know what this means?
1250 gain: i didnt see anything for this so i assumed no
My last question: is do i enter this both as a 1099-B and K1 sales. Or only one. I feel like they are double dipping on tax. I saw on the one of the forms if you submitted at 1099-B and clicked appropriate box which i did then you list sales price and partnership basis as both 0? Is that right for this situation? (see attached picture)
This is weird oil transportation K1 that carries a lot of debt and lost me 6k . im struggling why i owe thousands in taxes. I assume it has to do with the distributions - i thought i was being taxed on that as it affected my total income in past years?
Any help with any of the questions would be much appreciated. I worried im going to have pay someone to submit my taxes.
