You may have bought that partnership 6 years ago, or this year. You agreed to take on your portion of the partnership's tax burden at sale when you purchased units of the partnership. And the reason for this is that in an MLP, for example, your cost-basis can go up and down over/under the cost basis info provided by your broker (what you bought the partnership for from Fidelity, Robin Hood, etc.) due to the taxes and fees and dividends paid by that partnership over time. They only know what you see in the K-1 Transaction Schedule.ī) When you sold your share in your partnership, your broker (Ameritrade, Robin Hood, etc.) didn't know what your TRUE cost basis was. They only know that you sold such and such number of units on a specified date. In order to understand what you need to fill out, you need to understand why.Ī) When you sold your share in your partnership, the partnership didn't know at what price you sold it. THIS WILL AT LEAST GIVE YOU A GOOD SHOT OF GETTING TO THE FINISH LINE. I ONLY OFFER THIS SINCE NOBODY ELSE HAS GIVEN ANY GOOD INFORMATION ABOUT HANDLING THIS PART OF THE K-1 INTERVEIW. DISCLOSURE: I AM NOT A TAX PROFESSIONAL, THIS ISN'T TAX ADVICE, ETC.
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