Parker,a 25% partner in Delta Partnership,has a basis of $25,000 in his partnership interest.Parker receives a cash distribution of $24,000 at year-end.What is Parker's recognized gain or loss?

Question

Quizplus · Accepted Answer

Parker's basis in the partnership is reduced by the cash distribution. Since the distribution does not exceed his basis, there is no recognized gain or loss.

Parker,a 25% Partner in Delta Partnership,has a Basis of $25,000