Since it is the weekend and Support won't be available until Monday, I've dug into the forms again.
What seems to be happening is that TT4B believes I have 2 assets to tax.
The first one is from the 1099-S I received for the sale of the house that was originally inherited and then used as a rental. That generated form 8949 (and a slightly smaller capital gain than the second).
The second generates form 4797 (Sale of Business Property).
The two capital gains are then combined on Schedule D.
The first on Schedule D line 10, which shows the Sale Price, original basis when inherited years ago, the loss as a rental this year, and subsequent Gain from the Sale.
The second appears on line 14, which is plugged in by TT4B from Form 4797. Part III of that form takes the same property, sale price, original basis, cost of sale, etc. Then plugs in the IRS Section 1250 recapture tax. This results in a slightly higher capital gains rate, which I expected.
Unfortunately, instead of TT4B throwing away the first gain from form 8949 and simply using the higher gain (because I am closing the trust) from 4797, it adds them together on Schedule D. That "doubled" value then appears on the form 1041 line 10 as Total Income.
It is starting to sound like I may have answered a question incorrectly, which caused TT4B to think I am disposing of two assets. Or, there is a bug in the software.
