@nexchap Thank you so much once again for the prompt reply. For your comment about "If the broker used different lots than the K-1 ...", I saw two types of discrepancy and like like to make sure I understand and process correctly.
(1) K-1 and 1099-B are consistent in terms of the total units sold and the proceeds, but inconsistent in terms of the lot grouping. Better with an example - I sold All 100 units (all short term) on two different dates. Fidelity reported 4 entries:
[sale-date-1, units 20, purchase date-1],
[sale-date-1, units 10, purchase date-2],
[sale-date-2, units 50, purchase date-3],
[sale-date-2, units 20, purchase date-4].
On K-1, they are grouped into two entries:
[sale-date-1, units 30],
[sale-date-2, units 70].
Following your comments/suggestion, should I use 1099-B reported entries, and just modify/assign the cost-basis proportionally to reach the correct total amount of cap-gain? Will IRS try to reconcile with K-1 and expect somethings different?
(2) Another type of discrepancy is, as discussed earlier, when I did partial sell of another MLP, K-1 is using "unified basis" and assign sold units across all 4 purchase lots (proportionally), while Fidelity used the two lots I wanted to sell. As discussed, I will honor K-1's assignment, and try to correct Fidelity's record. If Fidelity cannot cooperate, I just keep my own records and adjust the basis accordingly (just make sure the 1099-B entries are there with consistent proceeds reported).
I know I am asking a lot of detailed questions here and apologies for the extra burden. Hopefully next year I will be much better prepared. Thanks!
