@joeygamb You're correct that your basis can't go below 0, so what has to happen is the $5,382 loss is going to be reduced to something that gives you a basis of $0. To do this, when you go through the K-1 interview there's a question about "All my investment is at-risk" (or words to that effect). You need to uncheck that box. TT will then point out that your losses are limited, and ask questions to fill things out correctly. The results will be on Form 6198. You'd then set your 1099-B cost to $0 for a $4220 cap gain, but TT should be putting the other K-1 entries onto your return to offset that.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
