I think that the options could be changed. Marking "disposition was not via a sale' show that the interest in the partnership was gifted (see K1P Addl Info 2 worksheet). While this most likely does not change taxes, it could incur in gift taxes now or limit lifetime gift taxes in the future. This situation has been this way for years as other have reported it before and I even found it in my 2015 taxes when I faced a similar situation.
