2022 K-1 box 16

[rodriguerex]

The publicly-traded partnerships that indicate a K-3 is included will not have them available until July. I am not a big investor, not even five figures. I don't want to extend my tax return and delay any refund, so I am inclined to indicate no that the partnership does not have a K-3. Therefore I have two questions below.

1. If stock investment activity notes some foreign income and foreign taxes, do I need to include K-3s and enter K-3 data and therefore extend my return?

2. What are the consequences for unchecking the box that there is a K-3 and not reporting any data for it when other stock activity includes foreign income and foreign taxes?

[DaveF1006]

No, you do not need to include K3 information if it isn't available. I wouldn't include the information from the stock investment activity unless it is on a tax form such as a 1099 or K1. Where are you viewing this information because it could be reportable depending on how it is reported.

There are no consequences for you for unchecking the Box because you do not have a K3 to report. As i mentioned before, where does it report your stock activity?  Is it in a K1 or disclosed within the supplemental statement?

Please reply back in this post.

[rodriguerex]

Thanks Dave. The foreign income and foreign income tax info will be on documents from the stock broker.  I had 2-3 stocks with foreign taxes deducted. The K-1 has no foreign taxed paid/accrued in question 21. With that information, do you think it is OK to say no to a K-3 not being attached?

[rodriguerex]

Perhaps related or unrelated to stock sales, I did sell some units of this PTP last year. In one transaction of several, a sales schedule with the K-1 reflects the sale as below. The gain was long-term. What if any changes do I need to make after importing the broker's statement?

Purchase Price 133

Cumulative Adjustment to Basis -56

Cost basis 77

Gain subject to recapture as ordinary income 51

Cumulative Adjustment to basis Adjusted for Bonus -46

Gain subject to Recapture as Ordinary Income Adjusted for Bonus 41

[DaveF1006]

I don't think you need to make any adjustments on your PTP transaction. if this information was on a K-1 and you reported this correctly, the program should calculate the gain correctly. just remember to enter this on your K-1.

My question is however did any income from broker statements also get entered in the program counting this income twice? You may wish to check Schedule D just to see if two identical transaction got reported. This is just an FYI !!

You may claim a foreign tax credit on the investment income by going to federal>deductions and credits>estimate and other taxes paid>Foreign taxes. 

Yes, it would be safe for you to indicate you have no K-3 attached.

@rodriguerex 

[Anonymous]

Is this true even when Box 16 "Schedule K-3 is attached if checked" is checked but no K-3 is available?  And if so, should you un-check Box 16 in your TurboTax entry?

[PatriciaV]

Yes, if Box 16 is checked but you haven't received the K-3, you have two options. You can uncheck Box 16, file now, and amend if necessary if/when you received the K-3. Or you can request an extension of time to file and wait to see if a K-3 is sent later in the year.

@Anonymous