How to calculate outside tax basis for Final Schedule K-1 (form 1065)?

[JUKEBOX2]

I have received a Final Schedule K1 (Form 1065) from my employer and it says "You should calculate your own outside tax basis of your partnership interest to determine if there is any additional gain/loss upon disposition of your interest"

Do you know how this can be done on Turbo Tax? Or do you think I should seek in-person help from a tax advisor?

[Anonymous_]

The personal editions of TurboTax will not compute your basis, but you can use the information at the IRS web site below.

https://www.irs.gov/publications/p541#en_US_202102_publink1000104288

[JUKEBOX2]

Thank you for the response @Anonymous_. Based on the doc, it seems like these are the factors that could adjust the outside tax basis:

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Increases.

 

A partner's basis is increased by the following items.

• The partner's additional contributions to the partnership, including an increased share of, or assumption of, partnership liabilities.

• The partner's distributive share of taxable and nontaxable partnership income.

• The partner's distributive share of the excess of the deductions for depletion over the basis of the depletable property, unless the property is oil or gas wells whose basis has been allocated to partners.

Decreases.

 

The partner's basis is decreased (but never below zero) by the following items.

• The money (including a decreased share of partnership liabilities or an assumption of the partner's individual liabilities by the partnership) and adjusted basis of property distributed to the partner by the partnership.

• The partner's distributive share of the partnership losses (including capital losses).

• The partner's distributive share of nondeductible partnership expenses that are not capital expenditures. This includes the partner's share of any section 179 expenses, even if the partner cannot deduct the entire amount on his or her individual income tax return.

• The partner's deduction for depletion for any partnership oil and gas wells, up to the proportionate share of the adjusted basis of the wells allocated to the partner.

• A partner’s distributive share of foreign taxes paid or accrued by the partnership for tax years beginning after 2017.

• A partner’s distributive share of the adjusted basis of a partnership’s property donation to charity.

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I am not sure if any of this applies to me, leading to outside basis changing for me. My partnership was of type "limited partner or other llc member" and in 2020 when the partnership ended, I exercised my options and was paid out distributions on them. I opted for net settle so my exercise cost and tax obligations were paid out in options itself, for eg instead of getting 100 stocks, I got 50 stocks as the remaining were used to cover the cost of exercising the options and the tax withholding.

Do you see a reason for me to calculate outside tax basis? If not could I just use my schedule K-1 form as is for my 2020 returns?