Partner D has a 25% interest in the profits/losses of the CDEF partnership. His share of the partnership s bottom line income/loss is ($40,000) and his share of the partnership s LTCL is ($20,000). At the start of the year his outside basis was $27,000. During the year he received a cash distribution in the amount of $15,000.

What is the amount of the gain/loss he must recognize as a result of the cash distribution, and how much of the ordinary loss and LTCL should he report on his individual income tax return for the year in question?