Catherine is a 30% partner in the ACW Partnership with an outside basis of $20,000. ACW distributes land with a basis of $12,000 and fair value of $18,000 to Catherine in complete liquidation of her interest. Catherine recognizes a capital loss of $2,000 on the distribution.

Question

Quizplus · Accepted Answer

No loss recognition since asset distributed is not cash or hot assets.

Catherine Is a 30% Partner in the ACW Partnership with an Outside