2 things to make sure - we can't see your k-1. 1) on the k-1 worksheet the sales price is not zero if there is section 751 recapture. If there is an amount for line 20AB on the k-1 (will also be repeated on the supplemental sales schedule), this is the sales price to use on this worksheet. basis is 0 and the gain is entered as ordinary income NOT CAPITAL GAIN
2) you cannot use the tax basis reported on the 1099-B. Brokerages generally use your purchase price which does not reflect the k-1 activity. Your correct tax basis can only be computed using that supplemental sales schedule. in short, your tax basis is the adjusted tax basis computed using the sales schedule + any section 751 recapture
