It is probably because I don't have a filled-in K-1 with the proper information, but unfortunately my Cross Reference shows something different, and I can't even find that Distributable Income worksheet.

However, I did notice that the bottom of your first picture mentioned rental income, but it is showing up in the column of the second picture as non-passive income.  Why is it is non-passive?  *IF* the rental is (1) a "trade or business" and (2) is non-passive, then 8960 would not apply to that income.  Might that possibly be what is going on???