Which of the following is true concerning a partner's basis in assets (other than money) distributed in an operating distribution?

Question

Quizplus · Accepted Answer

When assets are distributed in an operating distribution, their bases for the partner receiving them are the same as the partnership's bases in those assets or less. The partner's basis cannot exceed the partnership's basis because the partner cannot have a larger share in the asset than the partnership had as a whole. Therefore, the answer is C, which states that a partner's bases in the distributed assets will be less than or equal to the partnership's bases in the assets.

Which of the Following Is True Concerning a Partner's Basis