as to that 751/754
I'm retired but when I was active, I worked with different size CPA firms. never once did a see a 751/754 statement included with the individual's return with regard to a PTP though they are technically required. never once did I hear of a taxpayer being assessed a penalty for failure to include the statement.
this is from reg 1.751-1(a)
(3) Statement required. A partner selling or exchanging any part of an interest in a partnership that has any section 751 property at the time of sale or exchange must submit with its income tax return for the taxable year in which the sale or exchange occurs a statement setting forth separately the following information -
(i) The date of the sale or exchange;
(ii) The amount of any gain or loss attributable to the section 751 property; and
(iii) The amount of any gain or loss attributable to capital gain or loss on the sale of the partnership interest.
my contention is that the info is provided by reporting the sale on form 8949 (item i and iii) and form 4797 (item i and ii)
I have nothing authoritative to back up my contention.
a section 754 election is made by the partnership. There is nothing in the regs that say anything has to be filed by the partner.
