I appreciate the many replies, but most of the answers seem to miss that I filled out the worksheet correctly. It shows the correct gain. Gross selling price-selling expenses listed separately-basis=gain.
The problem is the that the correct gain just like you described does NOT flow to the Form 8949 in the correct amount. The Turbotax instructions for Form 8949 say:
Usage
Form 8949 is fully-calculated by the program. Do not make entries directly on Form 8949. Instead use the Form 1099-B Worksheet to enter this information.
Even though I list the correct gross selling price and list the selling expenses separately on the worksheet, then the correct basis, and the correct gain is showing, the only thing that flows to the adjustment column g on the 8949 is just the difference between selling price and basis. Turbotax ignores the selling expenses part of the calculation. Even the IRS instructions for form 8949 has this:
In column (g), enter $220,000 ($20,000
selling expenses + $200,000 exclusion) as
a negative number. Put it in parentheses
to show it is negative. In column (h),
enter -0- ($320,000 − $100,000 −
$220,000). If this is your only transaction
on this Part II, enter $320,000 in column
(d) on line 10 of Schedule D (Form 1040),
$100,000 in column (e), ($220,000) in
column (g), and -0- in column (h).
But Turbotax does NOT include the selling expenses in column g adjustment amount. It is not following IRS instructions and then it tells you not to change the amounts that flow to the 8949 because Turbotax automatically figures this. So that is why I called support and was told for some reason Turbotax ignores the selling expenses when you don't have a taxable gain. I know in the long run, it doesn't affect my taxes. As an accountant, I just have a problem with reporting an incorrect amount on a tax form. So I am left to override either the worksheet or Form 8949 to get the correct gain to show on my tax return.
