I bought and sold some equity in 2020. This equity turns out to partnerhsip agreement and i have now received 1065 K-1 profit on these. So say i bought for 10, sold for 15, so true profit 5. and now i have k-1 for 3.
So just to confirm
1) i will show 3 dollar as profit under contracts and straddle.
2) i will adjust the cost basis in 1099B and change the cost basis from 10 to 13...
Question
1) how do i adjust #2 in turbo tax. do i use manual adjustment or specific adjustment. and which adjustment code do i use ???
2) how will IRS know that i adjusted this10 to 13 because of item 1, as there is no direct link to connect these two... esp given there are so many sell contracts.. i cannot adjust 1-1 but will do a consolidated adjustment per security.. is that ok? or am i supposed to do it differently...
