The important thing is to report the sale at least once, but only once.  Because you need to enter the K-1 anyway, you can report the disposition via the K-1 (as you apparently have done, by selecting the "I disposed of my interest...." during K-1 entry) instead via the 1099 you received.

Whichever way you go, be sure that you report the sales proceeds (i.e., from the 1099-B) and cost basis correctly.  Note that your cost basis is likely not your original investment, but your basis in the partnership after all the transactions; i.e., at the time the partnership was sold or closed.

I did mark the K-1 as final and then put the sale price and the partnership basis as 0. So would I then change the 1099-b (as there is several investments on it not just this one PTP)  and put the amount figured on my sales schedule to the corrected cost basis? Doing this has increased the amount that I owe and I want to make sure I am not doing it wrong

Yes, if you are reporting the sale via the "Final K-1 disposition entries" you would just delete just the 1099-B transaction for the PTP sale.

Does the 1099-B report sales proceeds other than zero?  And do you know your final adjusted cost basis for the partnership interest?

Yes my 1099-B reports sales proceeds as other than zero, and for multiple investments, not just for the two PTP's that are final.  That is why I was thinking that I needed to adjust the basis and report the sale information as I mentioned before as 0.

I believe that I have figured the adjusted cost basis correctly? I put the sales proceeds and the original purchase amounts from my 1099-B into the sales schedule. Since the cumulative adjustment is a negative, I deducted that from the original purchase price to get the adjusted cost basis. Is that correct?

Your adjusted basis is generally the original investment, plus/minus your share of gains/losses while you were a partner, less any distributions to you while a partner.

We do not want to be double taxed -

We have received both a 1099B and a Final K-1 from a privately owned S-Corp.

We have owned shared in this S-Corp from 1990 though 2020,  they were purchased by another company and we were forced to sell our shares.  We received a 1099B from the paying entity with 1a no. shares, 1c date sold, 1d proceeds, 5 non covered securities, 6 gross proceeded reported to IRS, but no cost basis in 1e.

1099B

From a previous post in Intuit – We put the cost basis to be equal to the proceeds so that the 1099B would show zero gain.

Final K-1

In the walk through in TurboTax we checked the radio button “I sold outright (complete disposition)” so that the Final K-1 box would be checked on Schedule k-1 form 1120S.  then we selected “purchased”, filled in boxes – Acquisition Date, Sale Date, Sale Price, S Corporation Basis (that we calculate from K-1s from 1990 to 2020), then enter the K-1 as we received it.

Our concern was to make sure that the IRS received both 1099B and Final K1 from us as they did  from other sources.

Is this a correct method? 

We have seen other post to not enter the 1099B, but we thought this might flag an audit.

Thank you for your support -

Question addressed in this post (duplicate question):

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/we-do-not-want-to-be-...