I sold all shares. If all your shares were held long term, or short term, then you can just follow the prompts in the K-1 interview section. It will put everything in the right place, AND it will create a 1099-B for the cap gain/loss portion of the sale.

Are losses from publicly traded partnerships deductible?

A disallowed loss from a PTP is carried forward and allowed as a deduction in a tax year when the PTP has net income or when the taxpayer disposes of his or her entire interest in the PTP.

How are publicly traded partnerships taxed?

As a partnership, PTPs do not pay tax and are, therefore, able to pass more of their income—via quarterly cash distributions—to investors compared to corporations. These payments may resemble corporate dividends but are taxed differently (more favorably). This allows for the use of depreciation and tax losses.

How to report the sale of MLP shares in Turbo Tax?

There are a number of sale scenarios that must be dealt with: 1) Partial sales: In these cases, the capital gains/losses must be fully recognized. However, if you enter them during the K-1 interview they’re treated as passive and suspended (for cap losses) or used to release past years suspended losses (for cap gains). Neither is correct.

What happens when you sell a MLP stock?

As a result of section 751, a large portion of the gain/loss triggered on sale may be ordinary in character.

How are publicly traded partnerships different from MLPs?

•MLPs are a class of PTPs that trade on either a public securities exchange or other over-the-counter market •MLPs derive over 90% of their gross income from “qualifying sources” as defined in § 7704 (c) and thus are treated for tax purposes as partnerships •While all MLPs are PTPs, not all PTPs are MLPs.

What kind of tax do you pay when you sell a MLP?

Capital Gains Tax. If you held your MLP share for a year or less before you sold it, your profit is considered a short-term capital gain. If you end up with a net short-term capital gain over all of your sales of investment property during the tax year, the IRS will tax the gain at ordinary income tax rates.