"Ah, that clarifies it. Thank you. So the adjustments as reported on the sales schedule don’t, in fact, include credit for the suspended losses. That's what I didn't know."
No that's not correct. cumulative adjustments to basis include profit, loss and distributions.
Your tax basis for determining taxable gain is reduced for those losses on your k-1, but you have gotten no tax benefit out of them. until you deduct them which isn't allowed until either there are either profits or you dispose of the partnership.
And entering the ordinary income recapture into the 20AB interview box in Turbotax causes it to be carried to Form 4797 and taxed as ordinary income, so I don’t need to enter this amount anywhere else, correct? CORRECT. So after that I just change the partnership basis on the 1099B "not reported" section to:
1099B basis = purchase price - cumulative adj. to basis + 751 ordinary gain recapture CORRECT
