Your best option is to report the vehicle as sold for its book value (purchase price less accumulated depreciation). This is the amount of the property distributed to the partners. If the vehicle was not already recorded as a business asset in TurboTax, you'll need to record it first, including the depreciation. Then report it as sold. The net result is zero gain/loss for the partnership.
Yes, the property distribution amount is equal to the remaining book value of the vehicle. Your journal entry example is correct.
Note that the vehicle will be reported on the Depreciation report in TurboTax. This supports the calculations made for the "sale."
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