Tenn Jeff
Level 2

Thank you.  The calculations are all correct, the issue is how the program enters the numbers on the forms.  It designates the entire gain as "net section 1231 gain" even though there is substantial unrecaptured 1250 gain, which the program calculates.  At the end of the calculations, the program enters two numbers on the K-1 entry form:  on Line 9 of the K-1 entry form for net section 1231 gain, the number in the column on the far right is the entire gain (1231 plus 1250) and the number on the left (captioned "15/0% Section 1231 gain (loss)") is the true net section 1231 gain.  Of course, it also shows 1250 in item 8.  The true net section 1231 gain is not entered on the K-1 (below).  These are amounts that cannot be changed absent an override.  

The program generates the K-1 below, which shows the entire gain in the net section 1231 section, even though that gain contains the section 1250 gain, which is also shows!

Schedule K-1.jpg

Thanks again.