I do my best to avoid tax topics which I am not proficient in.  Once in a while I cannot dodge the return.

I am working on a partnership return (2 partners.) involving an exchange.  ALL 1031 requirements have been met.

The partnership owned a two family residence which was sold.  The proceeds were directly sent to the fiduciary agent handling the exchange.  On form 8824, I assume I am only reporting the cash that was transferred and report nothing on the basis of the residence sold?  For this example, let's say there was  no gain.  

Second question, the two K-1's are reporting gains as if there was no 1031 or form 8824.  Besides the entire forest, what am I missing here?

Thank you!

Regards,

Anthony