@bobp1426
@bobp1426 wrote:
So to make everything balance, I will increase the "Cost Basis" on my 1099-B form (since it's not reported to the IRS) until my tax is the same as it was without the K-1.
Just to clarify, you're not adjusting the basis to get to a total "tax" number. You adjust to make sure the amount of income that's taxed isn't double-counted. The amount of tax you pay on a K-1 investment will be affected by all the different rates the IRS applies to different types of income (int, div, qual div, long vs short term cap gain, etc) as well as any other limitations imposed by your return. There's no reason for the final tax on this buy/sell to match a similar buy/sell in a regular corporation.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
