Doris Owns a 1/3 Capital and Profits Interest in the Calendar-Year

question 59

Essay

Doris owns a 1/3 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' gain or loss on the distribution? What is her basis in the distributed assets?

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Definitions:

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Nonsteroidal Antiinflammatory Drug

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Pain Rating

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