Thanks for the reply.
Reading 1065 Part II form closely explained your comment about how to report the sale or not report if on a 1099B.
I used the new basis to show a loss on the sale via the 1099B. I left the Recaputure as ordinary income in the K1 sales question and it published as a loss in the forms. So now I have a carry over for next year in my case.
I think I have this correct now.
What is qbi in your reply?
