1099-B and K-1 duplicate gain adjustment

[DavidD66]

If you sold shares of a publicly traded partnership (PTP) or master limited partnership (MLP) you receive a K-1 and a Form 1099-B.  Both need to be reported.  I recommend you report your Capital Gain via the K-1.  To prevent your gain (or loss) from being reported twice, you will need to adjust the cost basis reported on your 1099-B so that your cost basis is the exact same amount as the proceeds.  If the sale is reported as "not reported to the IRS" you enter the adjusted amount when you first enter the transaction.  If it is reported on the 1099-B as "reported to the IRS" then you have to indicate that your cost basis is incorrect on a later screen and then enter the adjusted basis.