Get your taxes done using TurboTax

@JNKLQ First, as you've figured out, TT has not automated the process of handling K-1s in the same way they've automated W-2s, or 1099s.  That's partially because K-1s come in a thousand different varieties, and the tax issues are far more complex.  Anyone investing in partnerships needs to be aware of that:  you've either got to get hire tax advice, or invest the time to figure out how to use TT (or any other package).

In your original post, you mentioned a "Master Partnership".  Since this is a thread about MLPs, I assume that's what you invested in?  In that case, the basic answer is:

• Use the instructions that came with your Sales Schedule to figure out your correct cost basis.  TT will not figure that out for you.  You have to do it yourself.
• In the K-1 interview there will be a section asking about the sale.  You have to answer this carefully, because TT has a bug which hasn't been fixed yet.  The basic requirement is that you do not allow any Cap Gain/Loss to be calculated in this section:
  • If you don't have any Ordinary Gain listed on your Sales Schedule (or Gain Subject to Recapture....) then you enter 0 for sales and 0 for basis.
  • If you do have Ord Gain, their will be 2 numbers:  one regular and one for AMT.  You still enter 0 for sales, but you enter the two Ord Gain numbers in their columns and their inverse (e.g. if Ord Gain is 30, the inverse is -30) as basis.
  • When this is done, the sales summary screen will show zero for Cap Gain
• You now need to go to your 1099-B (you probably got one from the broker) to handle the Cap Gain/Loss.  You're going to use the Cost Basis you calculated here.  If you had no Ord Gain, you just enter the Cost Basis onto the 1099-B so you report the correct gain.  If you had Ord Gain, you enter your Cost Basis + Ord Gain.  This keeps you from being double-taxed on the Ord Gain.