Investors & landlords

assuming the $29905 is what you paid in 2020 for it, then since the sales info worksheet is showing adjustments to basis as -1924 your tax basis would be $27,981.  the withdrawals and distributions line is a plug to zero out your a/c. since the adjustmets to basis is the same as the loss, you evidently got no actual distributions.

all the trades for this security should be coded B - short-term trade with cost basis not reported to IRS.

for type B you can ignore the tax basis/cost on the 1099-B, use the correct tax/cost basis. 

also, make sure to indicate final k-1 and that you disposed of your entire interest. this should take you to another page to provide certain disposition info.  do not report the sale here. this will cause problems because this section is for sales where the proceeds are not on a 1099-B

 but you need to complete it so that loss (1924) is allowed.  for sales proceeds use 0 and for cost use 0 so net gain or loss is 0.

 

 

note this assumes that there is not an additional column on the supplemental sales schedule showing ordinary income on disposition - report on 4797 line 10  or possibly gain subject to recapture as ordinary income

 this amount would add to your tax basis.

 

then in the sales section of the 1065 form this would be entered as proceeds and ordinary income