@JamesChen Agree its way too complex....
On the K-1 interview, there's a screen for entering the details of the sale. Because you don't have Ord Income, you'd just enter 0 for everything here. On the rest of the K-1 interview, you'd enter the values and line items as reported. Note that the line 13 "other" deduction of $200 is going to need more info: it could go to a variety of places on the return, so you'll be asked to provide an explanation of what it is. Only the K-1 preparer (or the K-1 fine print) will be able to answer that.
On the 1099-B, $7000 would be the cost basis assuming the K-1 correctly shows what you originally paid as the Purchase Price.
As for understanding all this, the Part 11, section L stuff is just for your records. But what its telling you is that the Partnership generated $2,000 in income. Because you're a partner, you have to report that on your income taxes even though you didn't actually see the cash (TT does that when you enter the K-1 values). But that's also why your cost basis is adjusted. Assuming you paid $5000 for these shares, your Cap Gain would have been $2500 if your cost basis wasn't adjusted. But recognizing that $2000 that is reported elsewhere, you're able to change your cost basis and only report a $500 Cap Gain.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
