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Level 3
June 12, 2026
Question

PTP 1065 K-1 Questions

  • June 12, 2026
  • 0 replies
  • 17 views

I have two 1065 K-1s issued by different ETFs, and have a question on each of them. 

1. The first K-1 has $63 in both Box 13 code AE and Box 20 code B. On K-1, the $63 investment expense was included to calculate "current year net loss" in the Capital Account Analysis section. In ProConnect, the $63 was not showing up in Basis Limitation Worksheet, which I think it should. So, I put it on ProConnect input page: 1065 K-1 => Basis => Other current year decreases to basis. The $63 now shows up on Basis Limitation Worksheet and reduced basis ending balance to the same amount as capital account ending balance, although they don't have to be the same all the time. I'm not too sure about it because normally ProConnect would pick up the right numbers to show on basis worksheet. Is this just a glitch or there's a reason $63 should not be included in basis calculation.

2. On the other K-1, the box 19 distribution is empty, but there's $40k reported as Withdrawals & Distributions under Capital Account Analysis. For PTP K-1s, does it mean cost basis of ETF sale instead of cash distribution? I put it also on the input field: 1065 K-1 => Basis => Other current year decreases to basis. Is there any other input required? The ETF transaction related to this $40k was already included in 1099 right?

THANK YOU!