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Your assumptions are correct - the basis of your partnership interest is re-calculated (adjusted) every year based on items reported on K1 statement.you start with your purchase price (original investment) and then you prepare
Worksheet for Adjusting the Basis of a Partner's Interest in the Partnership
See page 2 in instructions
You do need K1 statements for every year you owned the partnership interest and prepare the worksheet for every year.
If you are using a tax preparation software - you will need to locate that worksheet and keep track every year.
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