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Level 5
June 21, 2020
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MLP PTP sales schedule adjustments to basis and gain subject to recapture.

  • June 21, 2020
  • 1 reply
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I am trying to enter a sale of MLP PTP shares.  The partnership sales schedule tells me to enter a figure for gain subject to recapture as ordinary income in column G.  Plus there is a cumulative adjustments to basis. How would I enter this in lacerte?  I have the K1 with the sales schedule and the brokerage 1099.  Thank you 

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Best answer by George4Tacks

I don't have the program handy, but I remember that it has something to do with making adjustments to the gain(loss) shown on the 1099B. This should hopefully get you there https://proconnect.intuit.com/community/form-1099-b/help/generating-form-8949-column-f-for-various-codes/00/3674

 

1 reply

George4Tacks
Level 15
June 22, 2020
LSTAXAuthor
Level 5
June 22, 2020

I saw that as well, but still need a little help.  Here is my example if you can help:

1099-B  under type E, shows 50 shares of a MLP sold with proceeds of 15,000 and cost of 27,000 .

The final K-1 has a sales schedule for that transaction:

Column 3 (Sales Proceeds) is zero.  Column 4 (Purchase Price/Initial Basis Amount) is $26,500.  Column 5 (Cummulative Adjustment to Basis) is  -9,000.  Column 6 (Cost Basis) shows $17,100.  Column 7 (gain subject to recapture as ordinary income) is $3,600.  Column 8 (AMT Gain/Loss Adjustments) is -85.

I am entering on 17.10 dispositions screen -  $15,000 for sales price but I'm not sure what/how to enter cost to show the adjustments.

Is cost equal to column 6 of the sales schedule 17,100 less the cumulative adjustment in column 5 -9,000?  How do I get the gain from column 7 onto 4794 part II line 10 or FOrm 8949 column G per the instructions?

How do you enter the cost elements correctly in Lacerte screens?