Skybluetax-You will have to create a new asset for the amount under section 754, make sure you check mark the section 754 adj and 743(b) adj under the asset worksheet, The amount being depreciated for the setup basis will not transfer to page one of the 1065 but to schedule k. Under schedule k where the step up bases is being reflect, you will have to make a special allocation to which ever partner that amount belongs to. By doing this it will also reflect the correct amount on your k-1 for the partner being affected along with the correct codes. The special allocation allocation will have to be setup under the schedule k-1 worksheet.
You may also have to make an adjustment to you schedule m1 depending how you are booking it in your books. I did not reflect this deprecation on the books so I had to make the adjustment on the schedule m1 in order to reconcile to the tax return.
