No, the $600 Ordinary Gain was not a result of my calculations, it is the value provided by the MLP in the "Ordinary Gain" column on my sales schedule. I'm supposed to use this as part of my calculation to get my actual cost basis to report on 1099-B? This confuses me. I still don't know how to calculate my actual cost basis so I'm pasting the information from my K-1 below....
Information Provided by Partnership
Column (1) - Units Disposed: This is the number of units you sold as reported to us by your broker or our transfer
agent. If this number is incorrect, you should contact Tax Package Support at 800-203-5179.
Column (2) - Disposition Date: This is the date you sold units as reported to us by your broker to our
transfer agent. If this information is incorrect, you should contact Tax Package Support at 800-203-5179.
Column (5) - Cumulative Adjustments to Basis: This represents the cumulative amount of income, gains, losses,
deductions, credits and distributions allocated to these units since your purchase, which either increase or
decrease your original tax basis in these units.
Column (7) - Ordinary Gain: If you have ordinary gain, a Section 751 Statement must be attached to your tax return. See the enclosed List of Tax Reporting Items and Definitions
for recommended statement wording.
Column (9) - Alternative Minimum Tax Basis Adjustment: Your gain, if any, should be adjusted by this amount for
alternative minimum tax purposes.
Information from Your Records
Column (3) - Sales Proceeds: Enter the total amount you received from the sale, net of any commissions.
Column (4) - Purchase Amount: Enter the total amount you paid for the units including commissions. If you
acquired the units by some means other than purchase (such as inheritance), please contact your tax advisor.
Calculation of Gain or Loss(-)
Column (6) - Total Gain or Loss (-): Total gain or loss is determined by subtracting the amounts in columns (4)
and (5) from the amount in column (3).
Column (8) - Capital Gain or Loss (-): Subtract the amount in column (7), if any, from the amount calculated in column (6).
