Business & farm

@desperado The "cumulative adjustments to basis" reported on the K-1 come from three places:

• Cash you received, but didn't pay taxes on.  Typically, this is the "return of capital" payments made by PTPs.  These payments lower your basis.
• Items reported on the K-1 as income (e.g., interest income) that raised your taxes, but didn't actually give you any cash.  Those items raise your basis.
• Items reported on the K-1 that give you a tax deduction (e.g., charitable donation) even though you didn't actually do anything.  Those items lower your basis.

So there won' t be any double-counting as long as your broker / K-1 provider didn't make a mistake.  If you believe you actually reported and paid tax on your dividends (just because they're on the 1099-Div from the broker doesn't mean you paid taxes -- the 1099-Div can also report cash disbursements that were treated as return of capital), and that your K-1 provider also included them in your basis adjustments, you'll want to get one of them to fix their records and reissue your statements.