@Anonymous_ @nexchap I want to thank you guys again for help last year.
Several years back, I bought a stock called MIC. In 2021, MIC converted to a MLP (master limited partnership). Per the instructions in the 2021 K-1, the conversion was treated as a "disguised sale". which meant I had to treat it like I sold the stock and bought the MLP on the conversion date After some discussion on the forum, I determined my basis for the MLP was the "Capital Contributed During the Year" shown on the 2021 K-1.
In 2022, the MLP sold it's assets and I was cashed out. Everything so far has been fairly straight forward, with the exception of the data in column 5, "Cumulative Adjustments to the Basis". I am not sure what to do with this amount. Incidentally, it is about 80% of my basis amount.
The K-1 contained this statement:
Column 5: Your Cumulative Adjustments to Basis includes your cumulative allocable partnership income, deductions, distributions, etc. and has not been adjusted for any gains recognized under §731 or §737. If you were allocated excess business interest expense, you may be able to add back this amount to Column 5 if you sold all or substantially all of your units. For additional guidance please consult your tax advisor.
Any suggestions?
