Found this thread.    I have a similar situation.  Redemption agreement done.   No assets, loans etc either.    3 Partners   Departing partner's distributions and subsequent buyout exceeds basis by $3200.00.    Buyout came from the partnership cash, not the individual partners cash outside the partnership.   

Should this payment over basis be handled differently than just listing it as a distribution on the K-1? or does the departing partners basis goes to 0,00 and the $3200.00 is listed elsewhere   

Do I need to fill out form 8303.   I started to fill it out , but it appears to have only one line for Transferee and both remaining partners % changed.  

Thanks