A partner recognizes a loss when he receives cash and other property with inside bases greater than his outside basis in a liquidating distribution.

Question

Quizplus · Accepted Answer

In a liquidating distribution, a partner does not recognize a loss if the cash and other property received have an inside basis greater than the partner's outside basis. Loss is recognized only if the cash received is less than the partner's outside basis and no other property is received.

A Partner Recognizes a Loss When He Receives Cash and Other