Thanks very much. My current understanding is that EBIE is added to the basis at the time of sale. I would like to confirm that that is correct and done prior to the 751 ordinary gain allocation. I am thinking to enter the total amount of EBIE as a positive basis adjustment on the 8949/Sch.D. The part that is throwing me is the state allocation. Not sure whether to back out Fed adj. and then enter state specific amount. Not alot of info I can find regarding EBIE as it applies to State returns. Got Fed return and states in limbo and the big day looming. Thanks for the consideration.
