Is this K-1 marked as final with a check in the final box at the top? If so, you'll need to account for the increase/decrease in your partnership basis immediately when calculating your taxable gain/loss on liquidation of PTE. A similar principle applies if you received cash distributions above basis during the year that you anticipate reporting as taxable.
If you don't understand what this amount represents, you'll want to reach out to the tax return preparer for more clarification about why this adjustment was created. Learn more: FAQs for Internal Revenue Code (IRC) Sec. 754 election and revocation
If you received a distribution of partnership property during the year, you may need this amount to complete Form 7217 reporting the distribution and your basis in the property.
Otherwise, this adjustment is not used immediately for tax return input. This is informational for you or your accountant to update your basis calculation of the valuation of your share of the partnership investment.
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