I am a general partner of a partnership LLC and getting K1 from this partnership every year. For first few years, we have losses but no gain. In 2018, the partnership sold some assets so we have gain on box 10 (net section 1231 gain). The 2018 K1 is not a final K1. I believe the gain on box 10 is returned capital. I don't know if I answered some questions wrong when using Turbotax, this gain become allowed loss from all passive activities. On schedule 1 (Form 1040) line 17, it shows negative numbers there which causing my income become negative. I can use this gain to offset some of the unallowed losses from past, but I do not need negative income. Anyone know which question I answered wrong and how to fix the problem? Thanks.
