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A partner recognizes gain when he receives cash in excess of his outside basis in a liquidating distribution. A partner will recognize a loss from
A partner recognizes gain when he receives cash in excess of his outside basis in a liquidating distribution. A partner will recognize a loss from a liquidating distribution when the distribution includes only cash, unrealized receivables, and inventory and the partner's outside basis is less than the sum of the bases of the distributed assets. A partner recognizes a loss when he receives cash and other property with inside bases greater than his outside basis in a liquidating distribution
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