@wstewart Let me preface this with "not tax advice". I've struggled with 8990 as well, so will offer my conclusions. But again, not tax, legal, investing, or life advice.
Your understanding matches mine: this is largely just a paperwork burden for small PTP investors who are pretty unlikely to have their tax bill actually affected. The way you describe filling out the forms matches what I do.
As to how you "exit", and add any unused EBIE back to basis, I haven't read anything that lists requirements for documenting that. So I just keep my own records. When computing basis on the Supplemental Sales Schedule provided by the PTP, the unused EBIE carryforward gets added back into basis, and all gains/losses use that adjusted basis. On 8990, Sched A, I just drop the PTP since there's no longer any carryforward to document. If the IRS ever has a question, it'll be easy to provide the backup at that point.
Hope that helps.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
