No the property was not contributed by the partner but bought by the partnership. So there is no gain or loss on the transfer. The property is being transferred at the value of the partnership and the capital account of the partner who is receiving the asset is being reduced for that amount. The question is which of the Turbo Tax for Business boxes is the correct one to use in the program to make the entry track to the K-1 correctly. It seems that the "sold" selection tracks correctly to the K-1 unless we are missing something.
