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Amanda has a basis of $400,000 in her partnership interest. Amanda receives a distribution in liquidation of the partnership. Amanda receives $225,000 in cash and
Amanda has a basis of $400,000 in her partnership interest. Amanda receives a distribution in liquidation of the partnership. Amanda receives $225,000 in cash and $75,000 in inventory of the partnership. Does Amanda recognize any gain or loss on the distribution? If so, and Amanda is unhappy about the characterization of the loss, what could Amanda suggest that the partnership do before liquidating?
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