form 7217 say it must be files when IRC section 732 applies.
IRC Section 732 applies to the basis of distributed property in partnerships, determining how the basis of property distributed to partners is adjusted. It governs both non-liquidating distributions, where partners receive property without terminating their partnership interest, and liquidating distributions (other than cash or marketable securities treated as cash - code A), where the partnership dissolves. The section ensures that the basis of distributed property aligns with the partner's outside basis, preventing double taxation on distributed property. For example, if a partner's outside basis is reduced by the amount of cash and the adjusted basis of property received, any excess is treated as a capital gain under IRC Section 731 (a).
this is not a form that can be filed separately. you'll need to mail your entire return with this form
