@arhorton glad to help. If you had prior losses that were "recognized" that will usually decrease your basis. (I saw usually because it can depend upon what kind of losses). Also FYI, "realized" means you get the economic benefit (if a gain, or determent if a loss). "Recognized" means that it is taxable income (or a deductible loss). The two often go together but not all the time. E.g. if your passive K-1 enterprise had prior year losses those losses may have been realized but they were not recognized because of the passive activity loss rules. In the year of complete disposition those suspended losses are allowed and recognized. In that example it doesn't really matter much except that the prior losses show up on a different form not a schedule D (as I recall).
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