Partnership/1031 Exchange

[Hoosier]

Partnership has 3 partners (not an LLC). Each partner owned a 1/3 interest of a rental cabin in Tennessee purchased in 2017. The partners purchased the cabin collectively and have reported the rent, depreciation and expenses each year on the form 1065 and have received a K1 from the partnership each year. The cabin is titled (deeded) in the names of the partners, not the partnership.
In 2021, the cabin was sold, the sale was reported on the 1065 and the gain for each partner is shown on the individual K-1s.
One of the 3 partners had his distribution from the sale go directly to a 1031 exchange service to purchase another rental property on his own in a 1031 exchange.
Since the cabin activity including depreciation has been consistently reported on the 1065 (although not technically deeded to the partnership) I would think that this would be considered a partnership asset and that utilizing the 1031 exchange for one of the three partners would not be permissible.
It appears to me that the 1065s including the 1065 showing the sale in 2021 is appropriate.
It appears to me that the 1031 exchange would not be permitted since the property was in a partnership.
Any thoughts or feedback on this situation greatly appreciated.

[Lion]

But, the property was NOT in a partnership. I think this question needs a lawyer first, before a tax preparer. Is your client the partnership or the person who owned 1/3 of the cabin?

[Beersheba]

Excellent observation Lion. The question is obviously how to handle for the partner, not the partnership, so I would assume the client is the partner, as the 1031 question would not apply to the partnership.
For legal purposes, the partner owned title to 1/3 of the property, but for tax purposes the partnership is reporting. If the criteria for 1031 is based on tax treatment, the Hoosier conclusion would appear to be correct. If not, I believe Lion has opened the door to possible 1031 treatment.

This is a great question, and I will be revisiting to see how it comes out.