Establishing correct basis - private company stock purchased through LLC (K-1 and 1099-B)

[sumita71]

Hi - 

I've seen similar questions on the community, but not exactly what I need help on. In 2019, I purchased an interest in an investment LLC whose sole purpose was to acquire AirBnB private stock prior to it going public. To keep it simple, let's say I invested $100K, but there was a 10% placement fee...so in my 2019 K-1, the capital account showed the $10K decrease for the placement fee and another $20K unrealized loss for the current year (2019). (AirBnB value actually went down). Fast forward to May 2021 (AirBnB went public in late 2020) after the lock-up expired, the LLC was dissolved and I received 1000 shares as a distribution (Code C on Box 19 of K1) at a basis of $90K (according to K1) with a fair market value of $150K (in the notes of the K1). Then I sold the shares a month later through my brokerage account for $160K and received a 1099-B for that listing proceeds but basis unknown. My questions are 1/ for the 1099B - what is my basis - the basis listed on my K-1 - $90K?  2/ for the 1099-B is this considered a short or long-term capital gain....did I acquire the shares when I bought my interest in the partnership or when I actually received the shares from the partnership?

[Mike9241]

did that $10K show up in section III of the k--1 in the initial year?

you see you may have a $10K loss when the partnership dissolved 

as to the stock, that note states your basis in the stock which is $90K

[sumita71]

No - the $10K just showed up in Part II, L (Partner Capital Account Analysis) in the initial year. In addition to the basis, the main thing I'm try to determine is whether the 1099 sales is short or long-term gain?