This is for anyone who knows about filing their taxes with a K-1 form. I am a new investor to BBEP. I bought and sold shares through my brokerage. I imported the tax info from my brokerage and they show my gains as a trade just like it was a stock trade.
But then I received the Schedule K-1 form in the mail. When I fill this out in Turbotax, it reports the gains here as well.
Question - do I just delete the trade info that came from my brokerage report and use the K-1 to report the gains from selling my BBEP shares?
Part 1 Revised method with no overrides:
The problem: Your broker gave you a K-1 with the basis marked as
Provided (8949 box A) or you downloaded and the download puts your
entry on an 8949 with box B selected. TurboTax made an entry, with
the basis corrected, onto 8949 with box C selected. You need to
get that sale onto the appropriate 8949 copy (A or B), but you need
to correct the basis as TurboTax calculated.
The solution: Write down basis from TurboTax generated 8949-C. You
might write down other information for later comparison to check
for unexpected discrepancy. Blank *each* entry for the PTP sale
from the 8949-C by right-clicking and choose to override and using
Backspace or Delete key. Don't delete the form, or otherwise TT
will re-created it.
Open worksheet that entered your broker-provided basis amount.
Unfortunately we do not how the IRS will match all the schedule D stuff. My guess is if the broker's code is A, they will try to see if your code A gross proceeds and basis match what the broker(s) report, taking ST/LT into consideration. If the broker code is B, they will match only gross proceeds to your code B items and if the code is C they will match nothing. I think the fact that Turbo Tax uses a C code for what they generate for an MLP could be a problem because it may cause a mismatch with the B coded items from the broker but time will tell.
I do have one MLP where Fidelity has reported basis (code A). This is obviously a mistake and I will use the adjustment column or a corrected 1099B if I get one..
dThanks for the good points. *SHOULD* not. I agree. I read postings that say it happens, however, including from brokers which offer the TXF file of the 1099B. Then how do you deal with it? You disagree in a way. Whether it is an imported "A" or a paper "A", I think we will have to use column (b) and (g) if our brokers do not do what they should.
Now if the broker reports the sale as a "B", then you can just override the basis if you imported it. You still need to deal with getting rid of the "C" entry that TT generates. Or don't import from the broker if you don't want to override.
I hope there is a nice way to handle this for next year. I will look to polish up my try at a procedure to work with TurboTax 2011.
The IRS is going to get a lot of different methods used by taxpayers for 2011, I suspect.
Thanks for a serious reply. I have deleted my Scottrade entry for BBEP....that was easy. But just to be clear, when you say to adjust the sales basis/schedule, are you referring to info imported on the K-1 from BBEP? I made only a few hundred dollars on the sale of a portion of my BBEP position. Thanks.