the problem is the 19c entry which I believe is improper since that partnership did not distribute the interest to you. Distributions are suppose to decrease your interest and that;'s not what happened, your interest increased.
if that entry was proper, it would be included on schedule L withdrawals and distributions. the problem with this entry is that the IRS may want you to file the 7217
19c instructions
Code C. Other property. Code C shows the partnership's adjusted basis of property other than money immediately before the property was distributed to you. In addition, the partnership should report the adjusted basis and FMV of each property distributed to you in a statement attached to your Schedule K-1. Decrease the adjusted basis of your interest in the partnership by the amount of your basis in the distributed property. Your basis in the distributed property (other than in liquidation of your interest) is the smaller of:
• The partnership's adjusted basis immediately before the distribution, or
• The adjusted basis of your partnership interest reduced by any cash distributed in the same transaction.
If you received the property in liquidation of your interest, your basis in the distributed property is equal to the adjusted basis of your partnership interest reduced by any cash distributed in the same transaction.
Using the information provided by the partnership and your own records, complete a Form 7217 for each date on which you receive a liquidating or nonliquidating distribution of property from the partnership. Attach the Form(s) 7217 to your income tax return.
what would go on 19C is if the partnership distributed non-cash assets to you like a fractional interest in the property . this did not happen. Nothing left the partnership. certain items were moved from one partner to you.
per IRS 7217 instructions
File Form 7217 by attaching it to your tax return for the tax year in which you received distributed property subject to section 732
IRC 732
General rule
The basis of property distributed by a partnership to a partner other than in liquidation of the partner’s interest shall ........................
the proper resolution to prevent an IRS inquiry is for the partnership to amend your k-1.
you may want to note this for future reference because there are some special tax aspects to receiving depreciable property as a gift
If the FMV of the property at the date of the gift is less than the donor’s adjusted basis, the depreciable value is still equal to the donor’s adjusted basis plus the applicable portion of any gift tax paid by the donor. However, if the taxpayer who received the gift sells the property at a loss, the basis for calculating the loss is the FMV of the property at the time the taxpayer received the gift plus or minus any required adjustments to basis while the taxpayer held the property. If the result is a loss when the adjusted basis is used to calculate a gain and the result is a gain when the FMV is used to calculate a loss, the taxpayer has neither a gain nor a loss on the sale of the property
