Doris Owns a One-Third Capital and Profits Interest in the Calendar-Year

question 68

Essay

Doris owns a one-third capital and profits interest in the calendar-year DB Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $20,000. On that date, she receives an operating distribution of her share of partnership assets shown below:
What is the amount and character of Doris's gain or loss on the distribution? What is her basis in the distributed assets?

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Definitions:

Leadership Positions

Roles or titles within an organization or group that carry responsibility for guiding and making decisions.

Underrepresented

Refers to groups or categories of individuals who are not adequately represented in a specific context or environment, often leading to calls for diversity and inclusion.

Prejudice

A preconceived opinion or bias towards someone or something, not based on reason or actual experience.

Gender Egalitarianism

The belief in and the promotion of equal rights, responsibilities, and opportunities for individuals of all genders.