In an operating distribution,when a partnership distributes property other than money with a basis that exceeds the partner's outside basis,the partner assigns a carryover basis to the distributed assets and recognizes a gain.

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In such a distribution, the partner generally takes a basis in the distributed property equal to the lesser of the partnership's basis in the property or the partner's outside basis, and does not recognize a gain.

In an Operating Distribution,when a Partnership Distributes Property Other Than