A and B operate a taxi business as partners. In the current year the partnership distributes to A a taxi purchased over one year ago for $5,000, which has an adjusted basis of $2,000 and a value of $3,000 when distributed. As outside basis is $1,000. (To make Internal Revenue Code Section 751(b) inapplicable, assume an identical distribution to B). The disposition of the taxi is not a taxable event to the partnership, see Internal Revenue Code Sections 731(b) and 1245(b)(3). What are the tax consequences to A if he immediately sells the cab for $3,000?