Follow-up question, which method to submit taxes to the IRS is best: complete the K-1 sales section to generate the appropriate capital gain on Form 8949 (Box F checked) and ord gain on Form 4797, and adjust the Brokerage 1099-B (Box E checked) cost basis that results in a 0 capital gain; or use the Brokerage 1099-b (Box E checked) adjusted with the 'Cost Basis' and 'Gain Subject to Recapture as Ordinary Income' from the Sales Schedule to show the capital gain, and then then adjust the K-1 sales section to generate the ordinary gain on Form 4797? Basically, will the IRS want to see the Brokerage 1099-B with a gain of 0, and a K-1 generated 8949 and 4797; or a Brokerage 1099-B with the capital gain of 1200, and a K-1 generated 4797. There is a defference in federal taxes of $6 between the two.
