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Very clever, Ira, but no. The return shows a large short term gain, a modest long term loss, and so an overall gain. LTCG rates do not apply - gain is taxed as ordinary income. Tax liability really is the same...

Agreed... but it wasn't obvious from the original post that this was so.

In this case I wouldn't waste the time to file an amended return. If the IRS resumes the suspended K-1 matching program, and if it catches the discrepancy between the corrected K-1 and the filed 1040, the computer should reach the same conclusion that you did -- no change in tax liability. Nor is there any carryforward loss to worry about.

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