If the property distribution occurs more than ____________years after the initial contribution, this rule does not apply.

4/11/2020 CengageNOWv2 | Online leaching and learning resource from Cengage Learning Discussion Question 113 (Lo. 4) Complete the paragraph below that outlines the issues that may arise if a partner contributes appreciated property to a partnership and then other property is later distributed to that partner. If appreciated property is contributed to the partnership and other appreciated property is later distributed to that partner, the distribution of the other property may trigger gain recognition to the contributing partner J . Gain is recognized to the extent of the lesser \\l of (1) the remaining J precontribution gain or (2) the fair market value of the distributed property over the partner's basis in the partnership interest before J the distribution. IF the property distribution occurs more than X 1 years after the initial contribution, this rule does not apply. The partner's basis in the partnership interest is increased J by the amount of gain recognized. In addition, the partnership's basis in the original precontribution gain property is increased by that amount, whether or not J the partnership has a 754 election in effect. Feedback Check My Work Taxable gains may arise on a distribution of property to a partner where precontribution (built-in) gains exist. 1 more Check My Work uses remaining https:llv2.cengagenow.oomlilmltakeAssignmentltakeAssignmentMain.do?invoker=&ta keAssignmentSessionLocator=&inprogress=false 1l1