I was a member of a partnership that bought out one of our members. Subsequently, this produced a 754 adjustment for the remaining partners whereby the transferred capital was treated as a distribution to the remaining partners and should produce an offsetting step-up in (outside) basis upon a sale. This was a real estate partnership and due to depreciation/distributions the transferred capital was negative, i.e., the exiting partner had a negative capital account. I understand that I need to increase my basis by the amount of the 754 adjustment so as not recognize additional gain. What I don't know is where or how I enter this amount into Turbo Tax when the property sells and gain is recognized. Any help would be appreciated.
