@nexchapyou are correct the 1099-B basis is same for all 3 scenarios. It is $13,821.87 (after adjustment from the K1 sales schedule) instead of $10,640.87 from the 1099-B. The 1099-B only has the Limited Partnership listed with short and long term gain. I don't have any other capital gains. The difference in the tax I owe is more than $1K between the scenario 1 and 2. The difference between those 2 is the no K-1 and the inverse of the income. The capital gain line 7 is very close on the 2 scenarios and that capital gain comes from the 1099-B after the $13,821.87 adjustment. If I don't adjust the 1099-B and leave the cost basis unchanged ($10,640.87) than the gain will be larger (obviously). The software counts the gain twice: the capital gain from the 1099-B with the $13,821.87 adjusted basis is $9,976 which is correct but then it adds the 7,203 as other income that comes from K-1 and from PTP which doesn't makes sense. I don't have any other gains except the $50 shown previously. So basically if I only leave the 1099-B and no K1 I owe $1K less tax. If I start inputting the K1 info where it says enter sales information the tax I owe increases for over $1K. Since the K-1 form line 1 says there is a loss of 2,521 (see above) the gain should be reduced unless I'm missing something. I'll read some more on this topic and hopefully I will figure it out by the time I need to submit the tax forms. Thanks again for your help.
