My earlier response was aimed at understanding why the box 10, Sec 1231 loss was getting to Form 4797 in the first place. My experience (with MLPs) is that the loss stays in suspension, never showing up on Form 4797 Part 1, until there's an offsetting gain from the same PTP. The K-1 worksheet in TT shows the amount that's suspended to future years, and the amount that's being recognized. Note that the gain could be on the K-1 itself, or it may be the Ordinary Income that can be reported on the Sales Schedule.
If you're dealing with a MLP, then you'll want to review the actual TT K-1 worksheet to see why the loss is being released. Col (c) of that worksheet should sum to 0 unless you've made a complete disposition.
If this is some other form of partnership, and the instructions make it clear that the loss is supposed to be reported on 4797 regardless of offsetting income, then you may need to explain what the K-1 instructions are telling you. That may help isolate how to get TT to treat it correctly.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
