This may warrant a one on one with a tax professional to help you navigate the "correct" gain or loss:
As noted by @M-MTax when you inherited the PTP interest, you receive a step-up in the basis ...
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This may warrant a one on one with a tax professional to help you navigate the "correct" gain or loss:
As noted by @M-MTax when you inherited the PTP interest, you receive a step-up in the basis equal to the FMV at the date of death of the original owner.
Determining this FMV at the date of death should be fairly straight forward since the PTP's are traded on the market. This figure becomes your beginning tax basis.
Make sure you maintain your documentation for your beginning basis; FMV price of the PTP
Taxpayer's have the initial burden of proof
You would then adjust this tax basis by the applicable lines on the final K-1.
This figure then becomes your "cost" basis (also your tax basis) when asked for this in TT.
Your selling price is obviously what you received when you sold the PTP interest.
Your holding period on inherited property would include the time owned by the decedent; so most likely LTCG.
The "basis" reported on the K-1 most likely has not been stepped up by the PTP
The information included with the K-1 may reflect some ordinary income recapture. This will result in some recharacterization of your overall gain or loss. TT will also ask for this information.
This recharacterization could change your loss (which you noted using the stepped up basis)
As an example, if you determine your loss to be $1,000, but there is $200 of ordinary income recapture, you will report the $200 of ordinary income recapture (should be reflected on form 4797) and then have an overall loss of $1,200; which nets to the $1,000 loss.
I would recommend you use the 1099-B and net that to zero; to avoid double reporting of any gain / loss. See next bullet.
Then when reporting the final K-1 information in TT, the software will ask for the information noted above. This information will then transfer appropriately to the form 8949 and Schedule D and only report the gain / loss once.
Partnership tax becomes difficult very quickly as noted above. Depending on the $$ involved, as noted earlier, you may want to meet with a tax professional to make sure you arrive at the correct overall gain / loss.