Deductions & credits

Your profile indicates you are using TurboTax Business and, I presume, you are preparing a 1065.

 

If that is the case, this "transaction" will not be entered on Form 4797. Rather, you would enter the conversion using Forms Mode on the Section 179 Disposition Report. The figures entered on that form will flow to your K-1s with a statement that contains the details of the transaction.