KFN How would I know when I traded this "stock"--one trade held one day--that I'd receive a K-1 the week my taxes are to be filed! My accountant had just finished my tax forms--50 pages--when this little gem arrived in the mail. What a pain. I guess another stock screen should include the letters "LLC". My "Do Not Trade" list.
I am not a tax expert so take what I am about to say with a grain of salt. Any income gain or loss passed through to you by the partnership affects your cost basis. So if the partnership distributed $752 to you in income, your cost basis in the partnership rises by $752. So on Schedule D, your profit would be $260 - $752 = -$492. Similarly, if the partnership throws off a loss to you, your cost basis decreases to compensate. Please do your own due diligence on this topic as I am no tax expert.