The Section 754 election must be made in a statement that is filed with the partnership's timely filed return (including any extension) for the tax year during which the distribution or transfer occurs. The statement must include:
- the name and address of the partnership;
- a declaration that the partnership elects under section 754 to apply the provisions of section 734(b) and section 743(b), and;
- the signature of a partner authorized to sign the partnership return
Report the adjustments on an attached statement to Schedule K-1.
Otherwise, these basis adjustments are not recorded in TurboTax, but on the partnership books. When the property is later sold, you'll adjust the basis at that time for tax reporting.
