Entire interest in PTP sold

[WhiteOleander]

Client sold his entire interest in PTP CedarFair. On the sales schedule that the PTP provided, it shows adjustments to basis. -17852. What I don't understand is, does this decrease or increase the partner's basis.

In other words, do I subtract this or add it to the partner's basis. The instructions say it goes to Sch D column E. So, as a negative number, I have talked myself into and out of each way.

Thanks.

[KBTS]

PTP Sale

I had a client with one of these this year as well. The instructions indicated that this reduces their basis, as this amount would indicate the distributions paid to the shareholder over the period they owned the PTP. Hopefully your schedule will show how much of the total gain is considered ordinary income which goes on line 10 of the 4797 and the rest is a capital gain - mine did or I would never have thought to split up the gain.