Filling in data from K1

Almost certainly NOT.

I would also HOPE that whomever you spoke to was NOT a CPA. Any CPA taking calls about taxes should no better. You have to report all the pass-through items so they maintain their same character on your personal return as they had on the original return - this is the VERY purpose of the K-1. Now I know you don't understand a word of what I just wrote, if you did you wouldn't be writing in for this kind of advice here.

What you need to do is to go see a local tax pro, one who understands Pass-Through Taxation Issues and have your return done professionally. These can be done at home by DIY'ers but you have to know enough about what's supposed to happen to know if its being done right.

You may also want to read over my upcoming post about the deficiencies of tax software. I expect to have that in to this NG later today.

Gene E. Utterback, EA, RFC, ABA

The loss in line 1 is usually not deductible -- ie. it does not reduce your AGI -- until you sell the K-1/stock, or when you have positive income in a following year. But sometimes the loss in line 1 may be deductible, and it goes on Schedule E page 2, and then to 1040 page 1.

The amount on line 19 reflects a return of your capital. It is not taxable -- not directly, at least. It reduces your cost basis in the K-1, and thus indirectly means a larger capital gain when you sell.

Maybe get professional help this year (then next year maybe you can do it on your own), sell the K-1, and buy a stock/ETF that has no K-1. You can also read up on K-1 if you're up to it, but it's painful for most people, and easy to get something wrong.

The company I have interest in had a merger late last year and converted all of their units into common shares which means I will not get one of these K1 POS anymore.

Thanks for the help.