Sale of LLC NIIT adjustment

[pkphlam]

I'm using Turbotax Premier 2022 Online. I need to report a sale of an LLC that I materially participated in. According to the IRS, the sale is a long-term capital gain (goodwill shares) and should not be subject to the NIIT. When I report the sale via my Schedule K1 in Turbotax, it is automatically calculating it with the NIIT.  After some searching online, it seems like the way to recognize this as not subject to NIIT is to fill out Form 8960. However, in Turbotax Online, it's telling me the only way to get to Form 8960 is by filling in info in the Investments section with Capital Loss Carryover, which is irrelevant in my situation. My sale was reported in the K1 section. It doesn't seem to recognize my situation even though the IRS allows an adjustment in line 5c of 8960 specifically for this.

Is the only way to do this to go through Turbotax Desktop and Forms Mode? Or am I missing something?

[Anonymous_]

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@pkphlam wrote:

Is the only way to do this to go through Turbotax Desktop and Forms Mode? Or am I missing something?

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Generally, that has been the only method to make this type of adjustment and this issue has been raised in prior years.