PTP Sale

Mar 17, 2009 3 Replies

When therre is a sale of a PTP on the NYSE, will the Partnership issue a final K-1? Are there any special handing required?


Yes and Yes

  1. You should get a final K-1 from the Partnership. If you have not yet received it, you may be able to download it at
    formatting link

  1. As part of the K-1, you should receive a "2008 Sales Schedule" which shows all of the details of the sale. It will include amounts for "Adjustments to Basis" and "Ordinary Gain". "Ordinary Gain" is reported on Form 4797 Part II, Line 10. You will also be able to use the data provided to calculate the "Capital Gain/Loss" which is reported on Form

1040, Schedule D. The Sales Schedule also provides an amount for AMT to be shown on the Form 6251, Line 17.

The K-1 should also give you the recommended wording for an "IRC Section

751 Statement". This statement must be included with your tax return. Because of the requirement to include this statement, it appears that the return must be filed manually rather then electronically.

Note: I am not a "Professional Tax Preparer". I sold a PTP myself and in the middle of going through the process of preparing my return.

replying to Kadaifi, OldandGray wrote: how does one handle wash sale of PTP?

The same as you would any other wash sale.

Ira Smilovitz

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