It appears the error can be traced to the worksheet "Distributable Income for Schedule(s) K-1". Line 4 in this worksheet is the distributable income from Net long-term capital gain, and the explanation on that line says "(Schedule D, line 18a, column(1))." Note that column(1) of line 18a in schedule D is the amount distributED to the beneficiary, not the amount distributABLE. The value for this line in the worksheet should be set equal to the amount in column(3) of line 18a in Schedule D, not column(1). Fortunately, Turbotax allows you to override this worksheet value as well. So if you manually set this worksheet value equal to line 18a, column(3) in schedule D, and then manually set the value in Schedule D, line 18a, column(1) equal to the amount of capital gain distributed from the K1, then it appears everything is correct. Note that I am not a tax expert, so I recommend anyone facing this issue wait for confirmation from Turbotax.
