The issue I am having is related to the reporting on Form 4797.  I have entered the 1231 gain as reported by the partnership on the partnership income and loss screen.  I have also reported the QOF transaction on Schedule D input screen and screen 91 for the QOF reporting. 

I am getting a critical diagnostic advising me that I should not file the return until the software is updated to account for deferral of section 1231 gains.  And the tax calculation is definitely off because the deferral is computed at cap gains rates, not ordinary rates as it should be for the 1231 gain.  And of course Form 4797 reports the full amount of the gain - no line to report the deferral per the IRS instructions.

Are you saying that I should report this partnership K-1 section 1231 gain on the Dispositions screen 17.1 INSTEAD of the passthrough entity input screen?