Yes, you need to adjust the cost basis reported on Form 1099-B. If the information from the K-1 package was entered/reported correctly, the program should have already entered whatever capital gain/loss you had on Form 8949 and any ordinary income on Schedule E. However, the IRS is expecting a 1099-B transaction to be included on your tax return. So you have to report the 1099-B. In order to prevent your gain from being reported twice, you have to adjust the cost basis so that it is the same as the proceeds amount, resulting in no gain or loss from the 1099-B entry.
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