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Kristen and Harrison are equal partners in the KH Partnership. The partners formed the partnership 5 years ago by contributing cash. Prior to any distributions
Kristen and Harrison are equal partners in the KH Partnership. The partners formed the partnership 5 years ago by contributing cash. Prior to any distributions Harrison has a basis in his partnership interest of $43,500. On December 31, KH makes a proportionate operating distribution of $46,500 cash to Harrison. What is the amount and character of Harrison's recognized gain or loss and what is his remaining basis in KH? $3,000 capital gain, $0 basis. $3,000 capital gain, $43,500 basis. $3,000 capital loss, $0 basis. SO gain, $0 basis
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