Sold ET last year. After an exhausting search I set the 1099B sell to a zero gain to eliminate the duplication of the sale. This was a long term sale with no basis provided to IRS.
I filled out the sales questions from the sales worksheet to: sale proceeds of 8414. Partner basis (box 6) to 2141. And ordinary gain (box 7) to 8526. (Note avg purchase price 10344 box 4. Box 5 was -8203. )
This results in a loss for the sale of the stock of -2252. And a huge income gain of 8526.
Question
1. I assume that the income gain of 8526 is the portion of the gain from the stock sale that is income. Well I have a loss on the sale and no gain. So is my logic faulty or I am getting hit with a income gain of 8526 with a loss on the sale of the stock? The 8526 is showing up on form 4797 line 10.
I will NEVER buy a K1 reporting stock again.
