There are a couple of ways to enter your 1099-B and K-1 to get to the correct result when you dispose of a Publicly Traded Partnership. If you follow the instructions that should have been provided with your K-1, you will end up both a capital gain/loss and ordinary gain/loss. So that you don't duplicate the capital gain/loss, you can then adjust your cost basis when you enter your 1099-B, so that it equals your proceeds and results in $0 capital gain/loss. The cost basis on your 1099-B from your broker will not reflect any adjustment for return of principal and the ordinary income component.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
