Cameron has a basis in his partnership interest of $5,000.Cameron's share of partnership income is $5,000.He also receives a cash distribution from the partnership of $13,000.What is his gain or loss as a result of the distribution?

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Cameron's basis in the partnership interest is increased by his share of partnership income ($5,000), making it $10,000. The cash distribution of $13,000 exceeds his basis by $3,000, resulting in a gain of $3,000.

Cameron Has a Basis in His Partnership Interest of $5,000