In many respects, you're complicating this by creating scenarios that are incorrect, and then trying to figure it out. But to explain Scenario 3, go look at the image you posted in your reply to Mike earlier. Notice how, when you enter 0 and 0, the bottom screen on that image shows a long term loss of 9,798? Notice how that's also the difference between your line 7s on Scen 2 and 3? That's not a coincidence. Scen 3 creates a phantom, incorrect, LT loss that is an error. It just added it into your return, without changing anything else. So throw that scenario away. That's why the instructions about entering 0s are a bug.
On your Scen 1 vs 2, I assume your cost basis on the 1099-B was the same for both of them. So the reason it only changed by $3 is your K-1. Look at line 8 (on the K-1) -- short term cap gain. Its $3, which is added to your other Cap Gains and Losses.
As for the $7,203, that's what's supposed to happen. The losses that show up on the K-1 are actually also losses are your tax return. So they help offset the Ordinary Income.
If you want to figure out if your Cap Gain/Loss is correct, go to the 1099-B itself and look at all the different entries. The one for this sale should be the loss calculated earlier. But you obviously have gains from other places, giving a net positive.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
