Bobby has a basis in his partnership interest of $50,000 when the partnership distributes $60,000 in cash to him. As a result of the distribution. Bobby reduces his basis in the partnership interest to $0 and he recognizes a gain of $10,000 on the distribution. A partner that contributes non-business property can tack its holding period so that when the property is ultimately sold by the partnership the partner will recognize capital gains. Whether the disposition of contributed property is ordinary or capital always depends on the manner in which the partnership used the contributed property