Current cash distributions from partnerships are nontaxable unless they exceed the partner's basis in the partnership.

Name: Current cash distributions from partnerships are nontaxable unless they exceed the partner's basis in the partnership.
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Current cash distributions from partnerships are generally nontaxable unless they exceed the partner's basis in the partnership. If distributions exceed the partner's basis, the excess is treated as a capital gain, which is taxable.

Current Cash Distributions from Partnerships Are Nontaxable Unless They Exceed