This is a long-standing bug.
In the K-1 interview, when it asks about the details for the sale, you have to avoid letting it calculate any cap gains/losses. Assuming you have Ordinary Income:
- If AMT isn't an issue, set the sales price = to Ord Income, and use 0 for basis
- If you pay AMT, your Ord Income will have an adjustment. Enter the Ord Income into each column, then enter its inverse as basis and $0 for sales price (e.g., if $100 for Ord Income, use -100 for basis).
If you do this correctly, the next screen will show all 0s for Cap Gain. This will prevent the K-1 from generating a new 8949 and double reporting the gain.
Note that you still need to adjust your basis on the 1099 received from the broker.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
