If the Schedule K-1 includes marketable securities, the partnership is required to separately identify both the fair market value of each security on distribution and the partnership's adjusted basis in each security immediately prior to distribution. See Partner's Instructions for Schedule K-1 (Form 1065) (2023 ). Generally this information appears in a supporting statement that comes to the partner with Schedule K-1. The partner needs to use this information to determine the partner's basis in the securities and whether or not there is any gain to be reported.