@hybridtaxguy Cost basis adjustment would be -1025, shrinking your Cap Gain by $182
As for reconciling the basis adjustment, K-1s can affect your taxes on a bunch of different forms:
- Sched D: The cap gain/loss you calculate
- Form 4797: The Ord Income
- Sched E: Any losses reported by the partnership show up here
- Sched B: any dividends or interest reported show up here
- etc.... Depending on what the K-1 actually reported over the year.
Note that many of those entries will be for things where you never saw any cash, yet you had your taxes go up or down nonetheless.
To properly reconcile, you have to add these forms up over the years you owned the partnership. But in the end, your premise is correct: the difference between cash in vs cash out will match the sum of all the entries on all those forms.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
