Partner Level Adjustments to Basis.
KMP sales sheet says they can be "additions to basis for distributions in excess of basis for which you have reconized income" That would be any 19A taxable, to you, distributions the MLP included in their basis adjustment.
If you still have a negative basis then report it as $0 per IRS K-1 inst Page 2.
Or at least thats how i think it works 😉
Useful K-1 answers
State Taxes
