Need help understanding Schedule K-1 adjusted basis rules for claiming partnership losses - so confused!

Schedule K-1s from publicly traded partnerships (PTPs) like oil ETFs can be incredibly confusing! Let me help break this down for you. Your "basis" is essentially what you've invested in the partnership, adjusted for certain items. When you buy shares, your initial basis is your purchase price. This basis increases with income reported to you on the K-1 and decreases with losses and distributions. For the OILP shares you sold, the loss in box 11C is likely from partnership operations. However, you can only deduct these losses to the extent of your adjusted basis. If you bought and sold within the same tax year, your basis calculations become very specific to your purchase price and any adjustments during your ownership period. For your CRUD shares that you still hold, the gain in box 11C represents your share of the partnership's income, which increases your basis. This gain must be reported on your tax return even if the market value of your investment has decreased - these are two separate calculations.

After struggling with K-1s from oil ETFs for years, I finally found a tool that makes sense of all this basis calculation and loss limitation stuff. I started using https://taxr.ai to upload my K-1 forms and it automatically handles all the complicated basis calculations and loss limitations. Last year I was completely confused about whether I could claim losses from my PETR ETF investment, and the whole adjusted basis thing was making my head spin. The taxr.ai system analyzed my K-1, walked me through my basis calculation, and showed exactly which losses I could claim based on my holding period. Saved me hours of frustration and probably kept me from making mistakes!

I was super skeptical about taxr.ai when I first saw it mentioned here, but I gave it a try with my complicated K-1 situation and it was seriously eye-opening. I uploaded my ETF K-1s (including one with substantial losses in box 11C) and it immediately identified that I had a basis limitation issue. The system guided me through calculating my adjusted basis for each partnership, showed exactly how much of my losses I could claim, and explained why certain losses were limited. It even created the basis tracking worksheets I needed for my records. What was truly helpful was seeing how my basis changed over my holding period with each distribution and income/loss item. Way better than the generic explanations my tax software was giving me. Definitely using it for all my K-1s going forward.

If you're still struggling with Schedule K-1 issues, I'd recommend trying to talk directly with an IRS agent who specializes in partnership taxation. I spent WEEKS trying to get through to the IRS last year with questions about basis calculations for my oil ETF investments. I finally discovered https://claimyr.com which got me connected to an actual IRS agent in about 15 minutes when I'd been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent I spoke with explained exactly how to calculate my adjusted basis and which losses I could claim based on my specific situation. They walked me through the whole process step by step.

I was completely wrong about Claimyr. After years of failing to get through to the IRS, I was extremely skeptical that anything could help. But I was desperate with my K-1 basis questions, so I gave it a shot. It actually worked exactly as advertised. The system called the IRS, navigated the menus, and waited on hold. About 45 minutes later (which is still way faster than my previous attempts), I got a call connecting me to an IRS agent. The agent spent almost 30 minutes explaining how to properly calculate my adjusted basis for my partnership investments and walked me through which losses I could claim given my specific holding period. For anyone struggling with K-1 basis limitations or loss calculations, getting direct guidance from the IRS was incredibly helpful. They explained everything in plain English and even told me exactly which worksheets I needed to complete. This saved me from making a potentially costly mistake on my return.

One thing nobody's mentioned yet is that PTPs like oil ETFs have special rules about passive activity loss limitations in addition to the basis limitations. Even if you have enough basis to claim the losses, you might be limited by the passive activity rules since these are generally considered passive investments. If your modified adjusted gross income is below $150,000, you might qualify for the $25,000 special allowance for passive losses, but otherwise those losses may be suspended until you have passive income or dispose of the entire interest.

Has anyone tried using TurboTax for these complicated K-1 situations? I've got similar oil ETF K-1s and I'm wondering if the software can handle the basis calculations correctly or if I need to override something manually.