Disposal of a publicly traded partnership

Forum|Forum|11 months ago
August 4, 2025
2 replies
18 views

When entering the disposal of a PTP the software directs me to not enter the sale price and basis if the sale was reported on a 1099, which it was. The problem is that the original basis (purchase price) was $500,000 and the adjusted basis provided on the K-1 Sale Schedule shows an adjusted basis of -$1,500,000 as well as a 163(j) adjustment of $1,300,000. What is the correct way to enter this? Using the numbers on the 1099 show a much lower gain, but I do feel like this is correct. Any help would be greatly appreciated!

ProSeries Basic

BobKamman

Level 15

Once the basis was used up, were the losses being carried over every year? What happens with that amount this year?

K

kindracpaAuthor

Level 3

All of the losses have been suspended, but can be recognized this year due to the disposal.

BobKamman

Level 15

Is this just an arithmetic problem? Cash out minus cash in should equal gains on Schedule D minus losses on Schedule E. If not, at least you have a clue about where to look for explanation.

Accountant-Man

Level 13

Whenever I saw a sale of a PTP on both the K-1 and 1099, I entered both but also made an entry to zero out the 1099 entry SINCE IT WAS WRONG AS YOU STATED. The 1099 basis was the original cost.

The K-1 sale entry would correctly report any gain or loss and any recapture.

** I'm still a champion... of the world! Even without The Lounge.

BobKamman

Level 15

I have seen 1099s from full-service brokers where the cost basis matches what is shown on the K-1. Your results may differ; that’s why it’s important to match cash out minus cash in, with the income shown on the return. And attach a computation of how you reached that result. You’re talking about real money here, not just numbers on a page.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded