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.
Correct Answer:
Verified
Correct Answer:
Verified
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