Thanks for your reply.
I originally sold my shares for around $2500 loss.
Section 11C in my My K1 form shows $5115 gain. According to the K-1 sales schedule, my cost basis has been decreased by $2568. So effectively I am paying taxes on the $5115 gain, and a tax on the profit due to decreased cost basis.
I am confused why I am paying taxes on $7600 when I actually lost $2500 on the trade.
