ThomasM125
Expert Alumni

Investors & landlords

I am assuming that the K-1 gain is duplicated on the form 1099-B reporting. If so, you would need to adjust the cost basis of the sale reported on the 1099-B to reflect a zero gain.  That way, the gain or loss reflected on the K-1 would be the only one appearing on your tax return.

 

I think you may have an issue with ordinary income being reflected on the K-1 form. You can't report ordinary income from a form 1099-B form, it would all be capital gain income.

 

So, if you try to just report the form 1099-B information, it may give you a different result that if you report the same information from a k-1 form.

 

So, if the form 1099-B duplicates the gain reported on the K-1 schedule, report the sale amount on the form 1099-B as stated on the form and adjust the cost basis to reduce the gain to zero. 

 

 

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