Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes aproportionate, liquidating distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and accounts receivable with a fair value of $8,000 (inside basis of $12,000) to Daniela. JRD has no liabilities at the date of the distribution.Daniela's basis in JRD is $20,000. What is the amount and character of Daniela's gain or loss from the distribution?

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Daniela's basis in the partnership is $20,000. The total distribution she receives is $16,000 in cash, $8,000 in inventory basis, and $12,000 in accounts receivable basis, totaling $36,000. However, since the distribution is liquidating, she will recognize no gain or loss until her basis is reduced to zero. The cash distribution reduces her basis to $4,000, and the remaining basis is allocated to the inventory and accounts receivable, resulting in no gain or loss.

Daniela Is a 25% Partner in the JRD Partnership