I have the same problem: A 1231 GAIN (positive) triggered a DECREASE in my taxable income. The IRS computer does not agree, and I had to pay additional taxes plus interest for 2022. It seems the problem originates in the K-1 worksheet, where a Section 1231 GAIN is made into a NEGATIVE number. While forms 8582, 4797, and Sch.D are correct, Schedule E is not. As a result, the taxable income is REDUCED by 2X the Section 1231 gain. I would assume the gain should only offset the ordinary income from the same partnership, which it does (regardless of whether the sign on Sch.K-1 column (c) is positive or negative), offset the LT cap loss on Sch.D, but otherwise not impact the taxable income.
Can anybody confirm this is a TTax bug?
