Atiqa receives a nonliquidating distribution of land from her partnership.The partnership purchased the land five years ago for $20,000.At the time of the distribution,it is worth $28,000.Prior to the distribution,Atiqa's basis in her partnership interest is $37,000.Due to the distribution Atiqa and the partnership will recognize income of

Question

Quizplus · Accepted Answer

C)Generally,neither the partnership nor the partner recognizes gain or loss on nonliquidating distributions.

Atiqa Receives a Nonliquidating Distribution of Land from Her Partnership