When I complete the 7203 from figures from my K-1, I get an error message that says "Line 3g cannot have a gain in Part 1 and a loss in Part 3" This makes no sense. The instruction for line 3g reads "Net capital gains (enter losses in part 3) My net capital gains reported on the K-1 are $39,318 from line 8a on the K-1. However, there were losses on the K-1 of "ordinary business income" of -$22,954, a "net rental real estate income" of -$331, a "net short term capital gain" of -$16,319. So, yes, there CAN be "gains" in Part 1 at the same time there are "losses" in Part 3. By definition on the 7203 form itself, Part 3 is for "...Loss and Deduction Items". It seems that each year there are more mistakes in how Turbo Tax is calculating K-1 and related forms.
