@manbeing MLP is Master Limited Partnership, but it doesn't matter. The only thing you need to do is enter the $1 in the Ordinary Income box, and then set the Cost Basis to -1. Do the same in the AMT column (using whatever the sales schedule tells you the AMT Ord Income is). That will make sure the K-1 doesn't create a new 1099-B for the sale, and you can use the existing one to handle the Cap Gain.
Note that the broker who gave you the 1099-B doesn't see the K-1. If the K-1 includes any adjustments to your cost basis, you need to change the cost the broker gave you. That's why the broker doesn't report it to the IRS: they don't know if its correct or not.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
