Get your taxes done using TurboTax

Got it.  

• Just enter the K-1 information as you normally would
• Make sure you indicate PTP and final; which it appears you have done
• Make sure you don't double up on the disposition component
• When entering the K-1 information, since you indicated you sold the units, there will be questions regarding your cost basis and selling price.  
  • Your cost basis is what is indicated on the K-1; $56,806
  • The 1099-B hasn't taken into account the current year activity which impacts your cost basis
  • Then the selling price is the $55,841
• When entering the above, this will provide an ordinary loss of the $2,254 from the K-1 items and then a short term capital loss of $965.  As a result you end up in the same place ($-3,219) except for the character of the items; which is to your advantage.
• As a result of entering this information in the K-1 section, you will need to make some adjustments on form 8949.
  • To avoid a matching issue on the 1099-B, enter the amounts as reflected, except you will need to make an adjustment to zero out the K-1; since it is being reported from input in the K-1 section.
  • Form 8949 column f should reflect code B.
  • I'm not sure if your 1099-B indicates the cost basis was reported to the IRS.  As a result, column e and g need to be adjusted accordingly.
  • The goal when entering the 1099-B information is to arrive at zero gain or loss since the loss will already be reported by TT from the K-1 section.
• At the end of the input, the 1099-B gain or loss should be zero and the K-1 input should flow and result in a $965 short term capital loss.
• The remaining $2,254 loss amount will be reported in various sections of the tax return.