A gain will only arise on a distribution from a partnership of cash that exceeds the partner's basis in the partnership interest. For this purpose, only cash, checks, and credit card charges are treated as cash.

Question

Quizplus · Accepted Answer

In the context of partnership distributions, "cash" includes not only physical currency but also checks and credit card charges. However, the statement is false because a gain can arise from distributions of property other than cash if the distribution exceeds the partner's basis in the partnership interest.

A Gain Will Only Arise on a Distribution from a Partnership