Partnership MLP k1 Sale information

Lets assume I bought MLP 2 years ago and sold in 2018.

Sale price  $ 20000

Purchase price  $15000

Cumulative adjustments: $ -5000 (I am assuming these are distribution which I got over time)

so basis will be  $15000 - (-5000) = $5000?  adjustment is negative number.

Total gain/ loss will be : $20000- $15000 - (-5000) = $10000

What are ordinary gains lets ordinary gains are $6000

Capital loss /gain =  $10000- $6000 = $4000

Capital gain/loss at end is taxable?

This is a complicated topic, but there is a lot of Q&A on this thread (https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-i-report-the-sale-of-mlp-shares-in-turbo-tax-i-sold-all-shares/00/776624) that can probably answer your questions.

In brief, though,

Q1:  you definitely want to use the info that came with the K-1, since the 1099 you received from your broker won't have accurate basis info.

Q2:  "basis is purchase amount - some adjustments (shown in K1)".  That's correct.

"What are ordinary gains?"  Your profit is your sale price less your basis.  But the IRS taxes that at two different tax rates.  A portion is "ordinary" (taxed just like income), and a portion is "capital".  So that's why your total profit is split between those buckets.  Note that on a sale, you report a) your capital gain ($4000 in your example), b) your ordinary gain ($6000 in your example), and c) some (or all) or your suspended losses (which Turbotax has been tracking and will be released to help offset some of that ordinary gain).  Don't forget about that piece.