Heidi and Teresa are equal partners in the HT Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners each have a $46,300 basis in their partnership interests. On December 31, the partnership makes a pro rata operating distribution to Heidi of $47,000 cash. What is the amount and character of Heidi's recognized gain or loss? What is Heidi's remaining basis in HT?

Question

Quizplus · Accepted Answer

The Answer of Heidi and Teresa are equal partners in the HT Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners each have a $46,300 basis in their partnership interests. On December 31, the partnership makes a pro rata operating distribution to Heidi of $47,000 cash. What is the amount and character of Heidi's recognized gain or loss? What is Heidi's remaining basis in HT?

Heidi and Teresa Are Equal Partners in the HT Partnership