Sorry for the delay as I have been out of town.
Your K-1 reflecting tax basis is good, but it would be a good idea for you to prepare your own tax basis so you can double check the accuracy of this figure as this is an important calculation.
When you do dispose of the investment, I would hope you would get a distribution but do not have sufficient details or information about the investment.
When you do dispose of the investment you do look to the value of your tax basis in determining your overall gain or loss. Using the K-1 figure can be tricky as sometimes the preparer of the return will include a balancing figure to get the ending amount to zero.
So in the final year, you will need to look at the amounts that are included in the current increase/decrease line AND the withdrawals/distributions line. If there is anything included in either of those lines that represents a balancing adjustment you will need to adjust your tax basis accordingly in determining your overall gain or loss on the investment.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
