@nexchap Some of your instructions aren't clear because in your summation equation, some of those numbers are negative. A concrete example would be ideal. I tried posting one but It looks to have been automatically deleted because I input dollars amounts? Kind of strange.
I believe the cost basis is exactly where it says "cost basis" (column 6) on the Sales Schedule. To trick TT, in your example, and if we use the accepted answer above, we also need to add in to the cost basis that of column 7, "gains subject to recapture as ordinary income".
It's still not clear to me if following @Mike9241 , whether or not my k-1 interview should result in $0 net long term gain, or a loss in the amount of the gains subject to recapture, or what. He does not make it clear what to in put
