SLOT: Trying to understand tax implications and the forms that would have to be used if I sold a few shares
Agree with liza, If you don't plan on selling more than 500 shares in 2013, ( b/c you only want a small amount of your investment) a simple way to do this is sell all your shares, then buy back what you want to hold long(less your 500 you want to sell) pay the taxes imposed for selling those shares,this would be an easier in the long run as now you can start zero on capital gains and hold long until you are ready to cash out again
As Liza said "As a rough estimate, sum all the distributions you received " In order to sum all distributions. Do I have to keep track them every year by myself or Can I get the sum of all distributions from the tax package support site after position is sold? Thanks
If the position is already sold, then there's nothing you can do now so you might as well wait for the K-1. If you did not yet sell your position but are trying to get a feel for the potential tax implication, you can use the calculator on the tax package support site - in fact that is what it is for.