hey roland, as far as I understand nexchap's method, you don't change the brokerage to zero gain. you change the brokerage basis (which the IRS won't know, since it's not reported) to purchase amount + capital adjustments + ordinary gain. what ever difference between that number and the sell amount will be the capital gains portion of your sale. the ordinary gain will be what's reflect by doing your k-1. and you do the whole "sale amount = -ordinary gain" on your k-1 interview to force the capital gains to zero for the k-1 interview portion. so in the end, your 1099 portion will only account for your capital gains, and the k-1 portion will only account for your ordinary gains.
