Parker,a 25% partner in Delta Partnership,has a basis of $25,000 in his partnership interest.Parker receives a cash distribution of $24,000 at year-end.What is Parker's recognized gain or loss?

Question

Quizplus · Accepted Answer

Parker's recognized gain is $0 because the cash distribution of $24,000 is less than his basis in the partnership interest of $25,000, so there is no gain recognized on the distribution.

Parker,a 25% Partner in Delta Partnership,has a Basis of $25,000