KathrynG3
Expert Alumni

Business & farm

You are correct. Use the K-1 to report the correct transaction details.

 

Regarding what was imported and now on Schedule D, adjust the cost basis to match the sales proceeds. This will bring the gain/loss reported to zero on Schedule D so that the tax is only paid once from the Schedule K-1 input.

 

This way, you will match the IRS forms as received.