Do I Need to File IRS Form 7217? TurboTax Premier 2024 Desktop version recommends that I File Form 7217......

In 2024, I acquired another partner's shares in a real estate limited partnership. I am also a partner in this same partnership.

The shares were gifted to me by the partner who had acquired them through inheritance many years ago from her deceased spouse.

Since the shares were gifted to me from another partner and were NOT distributed to me by the partnership, I am not sure if I need to file Form 7217 - Partner's Report of Property Distributed by a Partnership (as recommended by TurboTax).

The partnership reported this gift amount as "Transferred Capital" in their explanation of Part II, Section L of Form 1065, Schedule K-1. This same gift amount also appears in Part III, Line 19 Distributions of the same K-1 with Code "C".

Thanks all for your help and advice.

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