The Adjustment to Basis is actually a lot more than the return of capital. The return of capital is part of it, but so are all the other entries on your K-1. So, for example, if line 1 on the K-1 showed -1,000, your basis would be reduced by that 1000. That's where the depreciation and recapture come in.
If you look at Box L on the K-1, you'll see a line "Current Year Increase (Decrease)": that number is exactly how much your basis will eventually be adjusted for all the non-ROC stuff. And if you play with the entries on the K-1, you can figure out exactly where it comes from: its all the entries on the K-1 (except ROC) that you need to pay tax on eventually.
And, if you look at the "Ending Capital Account" in Box L, that will show what your total basis is at the end of the year: if you did a complete sale, your total Adjustment to Basis would bring your purchased costs down to that amount.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
