I have a similar situation - Energy Transfer LP - I received K-1 that has other information under line 20AB section 751 gain then under the sales worksheet it lists the initial cost basis and cumulative adjustments to basis leaving current basis negative then in column 7 it says section 751 gain subject to recapture as ordinary income, also received YE 1099 which list the sale of the above and shows proceeds with zero basis which makes sense as the cumulative basis is negative. My question do I report the proceeds with zero basis and the gain subject to recapture?