Sold publicly traded LP in2018. Fidelity 1099b cost basis is different from K-1.

[jk051839]

K-1 shows:   Purchase amount $20,000. Cumulative Adjustments to basis $ 14,000

Cost basis $6,000.

Fidelity 1099B shows cost basis of $20,000

[maglib · Accepted solution]

the basis of the investment in the PTP is adjusted each year by income, deductions, and distributions. The brokers do not normally see the annual Schedules K-1 and do not have the information to adjust the cost basis in the client's account records so rely on the k-1 for the adjusted basis in reporting.

NOTE: Make sure that if you enter via the broker 1099 and then the k-1 and it feeds to the capital gains as it should, that you did not report this twice.  I normally stick with the 1099 for the sale and adjust the basis and only enter the rest of the k-1 data, not the sale.