Ah, thank you.  Yes, Partner A paid Partner C directly.  The transaction was not with the Partnership Level.

But I thought for some reason the new partnership tax guidance required outside basis to be recorded at the Partnership Level now, via a Section 754 or 743(b) adjustment.  Is that not the case?

I should clarify that the Partnership was subsequently liquidated and all funds distributed at the end of the year after a real estate sale.  So I was trying to record the step-up in basis to ensure the correct gains are reported on the K1's, currently Partner A's gains are inflated.

As I'm also doing their personal return, when you say "reconciled on their personal return," how would you do that perse?  i.e. are you adding additional outside basis to Form 4797 upon the sale?  Do you have to reduce the gains on 8582?  Or what is the approach you're using?

Thanks so much