If you mean that you owned one percent of the LLC and you sold your entire share or the partnership was liquidated, you would enter the proceeds you received from the sale or liquidation as the sale amount and your basis in the company would be your cost basis.
Your cost basis would basically be what you spent to acquire the investment, plus any income you reported on your tax return, less any losses reported, plus any additional money your invested, less any distributions you took from the company, before the final distribution.
If my initial investment was 9000.00, then, should I add the income from line 2 to my cost basis.
Thx
Yes, that is correct, but you need to add all the income for the years you owned the investment. You can use the following worksheet as a guide to calculate your basis in a partnership interest: