I have a client who received a 1065 K-1 with Box 11i reported and a 1099-B for the sale of QSBS stock that is not eligible for the exclusion because the holding period was less than 5 years and the gain was not deferred in any other allowable way. 

Entering the information from both the K-1 and 1099-B obviously reports the income twice, once as ordinary gain that flows through Sch E to Schedule 1 and once as capital gain through the 8949 and Schedule D. I believe the capital gain treatment is correct. It appears that both methods of reporting are correct but it should only be reported one way. This is slightly confusing because one iway results in ordinary gain and the other in capital gain.

How do I report this income correctly given that I have two different forms reporting it differently? Is the capital gain treatment correct?

All knowledgeable help is appreciated.