I will provide some comments:
- As a member / partner in a partnership you are responsible for maintaining your tax basis in this investment.
- Your tax basis most likely will not equal what is being reflected on your K-1 as tax capital.
- What you need to do is determine what your tax basis is at the beginning of 2021.
- Update your tax basis for all applicable line items on your final K-1 EXCEPT for any distributions reflected.
- Once you have determined your tax basis and go through the TT questions, you will now have the information to input. Your selling price will be the distributions reflected on your final K-1 and your cost basis will be your tax basis. TT will handle the rest.
- When computing your tax basis you can compare it to what is reflected as your tax capital just to see if everything makes sense. But as noted, the amount on your K-1 is most likely not equal to your tax basis.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
