Hi nexchap,
First thanks for all of your help on this. I had a few questions on this topic:
1) Is it best to adjust the cost basis on the 1099-B directly using the Sales Schedule that came with the K-1, or am i better off setting the cost basis on the 1099-B equal to the sales price and entering the cost basis info in the K-1 Interview? In this case, i'd enter sales price as the proceeds from the sale and the "partnership basis" would be the adjusted cost basis + the ordinary gain?
2) Assuming i make the adjustments directly to the 1099-B as you suggested and set sales price equal to 0 and report the ordinary gain in the K-1 interview, why is the "partnership basis" the inverse of the ordinary gain number and not just $0? Does setting the partnership basis as the inverse of the ordinary gain negate the ordinary gain?
Thanks.
