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How we record and report inter partner buyout of partnership interest in 1065 and K1 form using ATX ? In an LLC with four partners with equal share and basis of $40 K each. Two of the partners bought out other two partners shares in January 1,2023 for $100 K each. This transaction is outside the partnership as no money came or gone through the partnership books.Remaining partners paid $100 each to outgoing partners. The additional amount of $60K to each outgoing partner represents the revalued machinery for a total of $120K. How this transaction reported in 1065 and K1 forms ?. For Outgoing partners additional amount of $60K is shown in line K 1 line 11 as a code F Section 743(B) positive adjustments . Line 19 shows distribution of $100K and K1 balance is nil. How this affect K1 of remaining partners ?. Line 13 with code V?. Do we need to book the $120K as section 754 adjustment in fixed assets and credit it to remaining partners ? Do any thing to record in Quick books ? Any other forms required ? Thank you all

Thank you all for the valuable inputs. Ascertaining QBI correctly is a pain.

Can we include rental property disposal income from Part 11 or 111 of form 4797 for QBI deduction?. In ATX (1040) inputs for form 8995 requires input of Disposition Gain/Loss from activity . Which amount to include here ?