@Rick19744, may I ask how I would enter this gain into TT? I tried doing it following these instrucutions:
"Yes, if you received a distribution that was more than your adjusted basis, you have taxable income. In most cases, this is a long-term capital gain, which is reported on Schedule D (as a sale with no basis).
To enter this, open your return and search on "investment sales," then use the jump-to link to go to the start of this section.
Choose "Everything Else" and follow the prompts to enter a description (ie: Distribution in Excess of Basis), the amount and the date you received the distribution. Continue to enter a Cost Basis of zero (because you have no remaining basis) and the date you first invested in the company. TurboTax will show a summary page that shows how this will be reported on your return."
This is from this link: https://ttlc.intuit.com/community/business-taxes/discussion/yes-if-you-received-a-distribution-that-...
However, if I follow this guidance and enter the zero cost basis and the distribution in excess of partner basis in that part of the software, I'm concerned that the gain we discussed above won't be coded as "passive activity income"--and therefore won't be offset by passive activity loss carryovers that I have in my return from cost segration studies conducted in prior years for other investments. I welcome your guidance on how to get this in the software correctly.
