THANK YOU!
Yes, I did correct the cost basis per the K-1 package on the 1099-B. Great.
1. I corrected the K-1 so that the 8949 F disappeared. Great.
2. OK correct that now shows "non-passive" income. Great.
4. OK I ignore as I don't have AMT (Form 6251). Great.
5. OK I ignore K-3 box check on K-1. Great.
So that fixes most. But...
Putting the "Gain subject to recapture as ordinary income" on the K-1 does fill the 4797. However, it looks like I am being double taxed: once on the capital gain 8949 (Proceeds - Adjusted Cost Basis) and 2nd. as ordinary income on Line 10 Schedule 1.
It seems to me that some of the "gain" from the sale is not to be taxed as Capital Gain but instead taxed as Ordinary Income. So somewhere I should be subtracting the Ordinary Income part from the 8949 Gain. Is that right?
The K-1 Package tells me to enter it on Form 8949 Column G as a negative number. I do that but it seems some code is needed to describe the adjustment? And so the adjustment isn't implemented in TT.
Thank you again.
