Technical topics regarding tax preparation.
8949 vs Back of the K1
16-Mar-2019 6:59am
1099-B (basis not reported) sale of, in this case Amerigas.
Basis listed, (although not reported) is $43,095.
A page of the Amerigas K1 is reporting "cost basis" relating to the sale of the shares.
Also reporting gain subject to Recapture of Ordinary Income with a suggestion as to how to adjust basis in order to report.
Given the 1099-B isn't reporting basis, I should use the K1 cost basis and make the ordinary income adjustment accordingly.
Yes?
16-Mar-2019 7:05am
Yes, use their worksheet to calculate how things should be reported.
16-Mar-2019 7:11am
ty, Seaside....
16-Mar-2019 9:00am
Bob A wrote:Given the 1099-B isn't reporting basis, I should use the K1 cost basis and make the ordinary income adjustment accordingly.
Yes?
Whether basis per the 1099-B is "reported" or not you must always use the K-1 sale schedule to figure your basis and gain & loss. The basis on the 1099-B is never correct since it is are not adjusted for the K-1 activity (share of income & losses and distributions).Generally you to take the basis per the 1099 and adjust it by the basis adjustments listed on the K-1 sales schedule to arrive at the actual tax basis for the sale. You report the 751 ordinary income on 4797. Then you bump the basis for the Sch D entry up by the amount of ordinary income reported on 4797.
16-Mar-2019 9:53am
Good input DAJCPA.
tyvm
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