Hi,
I purchased a MLP in 2018 that reorganized into a corporation about half way through the year. I never sold anything and still haven't. I received a K1 and put the details into TurboTax. My cost basis of the shares was about 6k, but now Turbotax is saying I owe another 4k in taxes(Im in the 22% bracket, so ~17k in extra income is what it looks like it is hitting me with). How can this be possible given my cost basis is only 6k. I received no distributions other than the new shares from the reorganization. I was also told that Cancel of Debt Income cannot be greater than my cost basis. Is that true?
I attached my K1 Any help would be greatly appreciated!
[attachment removed by admin as it contains potentially sensitive information]
I purchased a MLP in 2018 that reorganized into a corporation about half way through the year. I never sold anything and still haven't. I received a K1 and put the details into TurboTax. My cost basis of the shares was about 6k, but now Turbotax is saying I owe another 4k in taxes(Im in the 22% bracket, so ~17k in extra income is what it looks like it is hitting me with). How can this be possible given my cost basis is only 6k. I received no distributions other than the new shares from the reorganization. I was also told that Cancel of Debt Income cannot be greater than my cost basis. Is that true?
I attached my K1 Any help would be greatly appreciated!
[attachment removed by admin as it contains potentially sensitive information]
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