When Does a Partner Recognize Gain on a Distribution

question 72

Multiple Choice

When does a partner recognize gain on a distribution?

• A)In a liquidating distribution when the fair market value of the property received exceeds partnership interest basis.
• B)In a nonliquidating distribution and the property received exceeds the fair market value of the partnership interest.
• C)In a nonliquidating distribution and the cash received exceeds the basis of the partnership interest.
• D)Gain is not recognized until the property received for the partnership interest is sold.

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