The December 31, 2011, balance sheet of the DBW General Partnership is as follows:
The partners share equally in partnership capital, income, gain, loss, deduction, and credit and capital is not a material income-producing factor. On December 31, 2011, general partner Dana receives a distribution of $155,000 cash in liquidation of her interest under § 736. Dana's outside basis for the partnership interest immediately before the distribution is $110,000. What is Dana's gain or loss on the distribution and its character?

Question

The December 31, 2011, balance sheet of the DBW General Partnership is as follows:
  The partners share equally in partnership capital, income, gain, loss, deduction, and credit and capital is not a material income-producing factor. On December 31, 2011, general partner Dana receives a distribution of $155,000 cash in liquidation of her interest under § 736. Dana's outside basis for the partnership interest immediately before the distribution is $110,000. What is Dana's gain or loss on the distribution and its character?

Quizplus · Accepted Answer

The Answer of The December 31, 2011, balance sheet of the DBW General Partnership is as follows:
  The partners share equally in partnership capital, income, gain, loss, deduction, and credit and capital is not a material income-producing factor. On December 31, 2011, general partner Dana receives a distribution of $155,000 cash in liquidation of her interest under § 736. Dana's outside basis for the partnership interest immediately before the distribution is $110,000. What is Dana's gain or loss on the distribution and its character?

The December 31, 2011, Balance Sheet of the DBW General