Which of the following statements is true regarding partnership operating distributions?
A) If a partner's outside basis is greater than the bases of the assets distributed in an operating distribution, the partner will recognize a loss.
B) If a partner's outside basis is less than the bases of the assets distributed in an operating distribution, the partner will recognize a loss.
C) If a partner's outside basis is greater than the bases of the assets distributed in an operating distribution, the partner will recognize a gain.
D) None of these statements is true.
Correct Answer:
Verified
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