@EclecticEd If you found your way to this thread, you know my approach is to not let the K-1 generate its own 1099-B. You already have one from the broker. So on the selling interview, everything would be 0 (I suspect you don't have any Ordinary Income/Gain -- its specifically called out as 'Ordinary Income' on the Sales Schedule, typically Col 7).
Then you have to fix the 1099-B. Your cost basis is not $20,000. That was your purchase price. But the K-1 reports Cumulative Adjustments to Basis, which need to be added to the $20k. Let's say that's $2000. Then your new cost basis is $22,000. That's what goes on the 1099-B.
Since Schwab reported the $20,000 to the IRS, there's a spot in the interview (or in forms) where you can check a box stating that "Broker reported an incorrect cost" (or words to that effect). Do that, TT will ask you for the correct basis, and then fixes the return.
In the end, you should still be paying tax on about $5000 in profit. Its just that some of that profit is reported on the Schwab 1099-B, and the rest of it is from items included on your K-1.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
