@Anonymous You would check the "at-risk" box.
When you first buy a position in a partnership (e.g., for $100) your entire investment is "at risk": if the parternship went bankrupt, you'd have lost your investment. Over time, though, the partnership may start giving you back cash (ROC distributions) or losses on the K-1. Once that total reaches $100, you no longer have anything "at risk" -- you put in $100, and the partnership has given you back $100 (either as cash or as eventual deductions on your taxes). At that point the rules for handling K-1s change.
That obviously doesn't apply to your situation.
As for adjusting your 1099-B: definitely the right thing to do. Whether you made the adjustment correctly can be verified by looking at the combination of your capital gain/loss, and and other items of loss or income that came through on the K-1. When you find them all on your tax return, the total your paying taxes on should still match your "small loss"
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
