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column 7 of the supplemental sales schedule needs to be entered in the sales section of the k-1. it's ordinary income that should flow to form 4797 line10

 

this ordinary income increases your tax basis in the partnership. your options are to add it to the tax basis reported n column 6 (column e on the 8949) or enter as a negative number in column g on form 8949. use code B for column f

 

the broker's 1099-B does not report the correct tax basis. 

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