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Get your taxes done using TurboTax
The Unrecaptured Section 1250 Gain from the partnership's sale of the asset should be reported in box 9c of the Schedule K-1 you received from the partnership.
The termination of the partnership is a disposition. After you enter the K-1 from the partnership, TurboTax will ask you about the disposition. If everything you received from the partnership is reported on the Schedule K-1 and entered into TurboTax, during that disposition you will report no amount for the sales price (because the partnership terminated, and everything you received is reported on the K-1), and your adjusted basis in the partnership after all the current year activity (which may be "zero", i.e., you won't have a gain or loss on the disposition of your share of the partnership).
If you had prior year disallowed passive losses for this partnership, those should show up as a deduction on your tax return in the year the partnership disposed of the asset.
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