I really do appreciate your help, but I am having problems. The ordinary gain did flow through to 4797 line 10, so that seemed to go correctly. Form 8949 does not allow edits, so I presume I need to adjust the basis on the 1099-B, correct?
Here are the numbers as reported on the sales schedule: initial basis/purchase price = $60,000
cumulative adjustment to basis = -$32,000
cost basis = $28,000 - is this what I need to report as my new basis on the 1099-B?
My sales schedule calls the $28,000 "my estimated outside basis (exclusive of liability allocations) in the disposed partnership interest. "
I am confused by your statement "add the amount of ordinary income reported above, if any." First, I'm assuming you mean "Gain Subject to Recapture as Ordinary Income" is the Ordinary Income you are describing? Second, add to what? This number was $32,000. Where do I add this?
Again, in my sales schedule, "Gain Subject to Recapture as Ordinary Income" = $32,000 and states "report this amount as a negative adjustment in column G of Form 8949 to calculate the correct capital gain or loss"
Boy, I will never buy a PTP again! Thank you for your help.
