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8949 vs Back of the K1

Technical topics regarding tax preparation.
#1
Bob A  
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FLA
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?
 

#2
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North Carolina
Yes, use their worksheet to calculate how things should be reported.
 

#3
Bob A  
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ty, Seaside....
 

#4
DAJCPA  
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Colorado
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.
 

#5
Bob A  
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215
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FLA
Good input DAJCPA.
tyvm
 


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