As a general rule,a distribution to a partner from a partnership is treated as:

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Generally, a distribution to a partner from a partnership is treated as a return of capital and is not taxable. Therefore, it reduces the partner's basis in the partnership. If the distribution exceeds the partner's basis, any excess is treated as a gain. However, this gain may be postponed until the partner disposes of the partnership interest.

As a General Rule,a Distribution to a Partner from a Partnership