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K1 and 1099B duplicate info (maybe) - Do I report both?

TaxDebbie
Level 2

My client gave me 3 K1s and said he didn't print his Robinhood Security statement because he thought all I would need was the K1s.  I requested the Tax statement which included the 1099B statement.  The capital contributed in part L (Capital contributed) of the K1 matches the Cost Basis of the same named LP on the 1099B.  The gains do not match.  Would I be double reporting gains/earnings if I report both the K1 Other income and 1099B gain?

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sjrcpa
Level 15

Basis in a partnership starts with cost. Then you add the income, subtract the deductions, etc. to arrive at basis.

The 1099B likely shows original cost.

If these are Publicly Traded Partnerships, the partnership provides info on how to calculate the basis and how to report the ordinary income and capital gain portions of the sale.

And you have to report all the stuff on the K-1.

And tell your client not to buy and sell these. Your fee for dealing with them is more than he is likely to make off them.


ex-AllStar

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3 Replies 3
sjrcpa
Level 15

Basis in a partnership starts with cost. Then you add the income, subtract the deductions, etc. to arrive at basis.

The 1099B likely shows original cost.

If these are Publicly Traded Partnerships, the partnership provides info on how to calculate the basis and how to report the ordinary income and capital gain portions of the sale.

And you have to report all the stuff on the K-1.

And tell your client not to buy and sell these. Your fee for dealing with them is more than he is likely to make off them.


ex-AllStar

View solution in original post

abctax55
Level 15

Susan, you make that sound so, so *simple*.  I've fired clients that keep investing in PTPs.

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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TaxDebbie
Level 2

It sounds like I am in over my head on this one; no CPA background here.

All 3 companies are "exchange-traded security or funds" (pulled from the internet). I explored several articles (one titled "USO Investors: Get Ready for This Huge Hassle").  Wow I thought the 60+ page 1099s were a hassle. 

I had this return completed, excluding these entries.  I will contact a tax office to see if they will take on this client to finish the return. Thanks for the info.