What you describe does not suggest anything having to do with the performance of TurboTax. With $25,667 of basis in the oil-well investment and nothing back, you have a loss, not a taxable gain. Entering that correctly into TurboTax would not result in any increase in taxable income. Instead would generally result in a $25,667 loss that would generally reduce your taxable income. If a similar entry error was made in any other tax software, the result would be the same.
In 2017, if the sale of the house qualified to have the gain excluded from income, that would have been reflected on your 2017 tax return with the house sale not adding any taxable income on your 2017 tax return. That sale has nothing to do with the tax treatment of the subsequent oil-well investment.
One other thought: Did you receive a Schedule K-1 (Form 1065) showing Unrelated Business Taxable Income (UBTI) with code V in box 20? UBTI in excess of $1,000 is taxable income to you regardless of the performance of the investment itself. That's an often unanticipated negative side-effect of this type of investment. However, if the investment was terminated, the reduction in income tax due to the loss on the investment itself would offset this.
