Ok, I believe I figured this out, thanks to DawnC for cluing me in.
On my final K-1, I had the following in the supplemental section:
Sales proceeds: This is the total amount of the sale (this was actually blank, got this from the broker). Let's say this is 30k.
Cost basis: This is what changes over time because of the way these partnerships work. Let's say this is 10k.
Gain subject to recapture as ordinary income: This is what the form says should end up on 4797 AND is QBI. Let's say this is 35k.
So in TTO Flow:
On "Describe the partnership" page:
- Checked this is ptp
- Checked "this partnership ended in 2020"
- Checked "disposed of a portion of my interest..."
On next page, checked: "Complete disposition"
On next page, checked: "Sold partnership interest"
And on the page "Enter Sale Information":
- Sale price: Entered the 30k
- Partnership basis: Entered the 10k
- Ordinary gain: Entered the 35k.
And then at the very end, on the page: "We need some information about your 199A income"
- Checked "..has business income (loss)"
- Entered the 35k as "Ordinary business income (loss)"
- Entered the 35k as "Total ordinary 4797 gain(loss)...".
Now, the form told me that:
- I should see an entry on the 8949 that is a loss: Proceeds - Basis - Ordinary income gain: 30k-10k-35k. And I do see that loss item.
- I should see the 35k on the 4797, and I do.
- I should see the 35k qualify as QBI, and I do.
All good!
