The issue is on my 1065 business return. Sch K-1 line 20 has a statement called QBI Pass-through Entity Reporting that shows the difference between the asset purchase price and sale price as a Sec 1231 loss even though the asset was sold for a gain (asset had been depreciated to a book value of zero). The gain is also shown on K-1 line 20. The effect when this flows to my personal return is that the gain correctly becomes ordinary income on form 4797 while the supposed loss reduces my QBI (but not taxable income).
