In a current distribution, the partner's basis in the partnership interest is reduced by the amount of money received and by the partnership's bases in the distributed property.

Question

Quizplus · Accepted Answer

This is true according to the general rule under IRC Section 731(a)(1) that a partner's basis in their partnership interest is reduced by the amount of money received and by the partnership's bases in the distributed property.

In a Current Distribution, the Partner's Basis in the Partnership