@nexchap I thought I am all good but found quite a trouble when I check the NJ State Tax after the two K-1's input. I know this may be a NJ specific problem but I also hope such issue may be encountered somewhere else. For USO K-1 (100% disposal in 2020, all short term), due to a big adjustment (-$48K) of cost in K-1, it created a similar amount (48K) of Cap-gain in 8949 but was offset in Schedule D with the business losses reported from K-1, all come out correctly with a $-1830 capital loss. However in NJ State Tax, the capital gains and Business (operation) gain/loss are reported in two different forms, which are then rolled into NJ1040. The problem is, for the business operation part, gain and loss can offset between businesses but will not be allowed to show up in NJ1040 if it's a net loss (which is the case here, -$48K). In the end I end up with a 48K cap gain, instead of 1830 loss. I am wondering if I can adjust the USO unit basis in JNJ return to reflect the true purchase price (no "ordinary gain" in K-1 Sale Schedule) but it will be inconsistent with Federal return. BTW, a formal document about NJ tax of partnership says "Losses - You cannot offset a loss in one category of income against income in a different category. You cannot carry losses forward or backwards from one year to another on your Income Tax return", which means I have no way to actually recapture the loss later, but have to pay the "fake" cap-gain? Appreciate any light you or anyone else can shed on this matter!
