Ok. Here are some final thoughts based on the facts provided:
- There appears to be a clear disconnect between the 1099-B and the K-1.
- The information from the 1099-B indicates you have a gain of $4,607; 37,092 less 32,485.
- The details from the K-1 indicate you have a loss of $11,420
- This is arrived at taking the beginning figure in box L of 14,887 and subtracting out the current year loss of 943 which leaves 13,944.
- So the 13,944 is your tax basis (in theory) and then the K-1 reflects the "sales" price (distribution) of $2,524
- The difference is the $11,420; an overall loss because you have basis remaining after the distribution
- Since I can't see everything, nor can I determine what should be your tax basis, I recommend one of the two suggestions:
- You may want to meet with a tax professional. Provide this individual with everything you have related to this investment; which means all K-1's since inception
- In general, I have more confidence in the K-1 information than the 1099-B information in these types of investments. Relying on the K-1 information:
- Input the 1099-B information as reflected; this reflects the gain shown above (4,607). This information is reflected in the normal investment section in TT, which you have most likely already done.
- Box L should be close to your tax basis; at least in theory. In order to arrive at the K-1 loss of $11,420 you would need to show proceeds (your distribution) of $2,524 and tax basis of $18,551.
- This produces a loss of $16,027 which when netted with the gain from the 1099-B arrives at the net loss of $11,420 which is noted earlier.
- So that's the best I can do with the information provided.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
