I can't really wrap my head around this, and think something may be off.
I have a K-1 with a box 10 (Net Section 1231 gain (loss)) of +6,383. Box being -1,879 -- so still a ~4,500 overall gain
After entering POSITIVE 6,383, my Taxable Income is going DOWN.
I thought after entering that gain my "Federal Tax Due" would be worse, but it actually flipped to a refund.
Was a pretty vanilla K-1 with nothing crazy. I can almost see, best case scenario having no tax change (due to offsets/carryovers), but this doesn't make sense.
This can't be right, can it? Would love some help
