Question
Please explain the difference 1. Under which of the following circumstances will a partner recognize a gain from a non-liquidating distribution? a. A partner will
Please explain the difference
1. Under which of the following circumstances will a partner recognize a gain from a non-liquidating distribution?
a. A partner will never recognize a gain from a non-liquidating distribution.
b. A partner will recognize a gain from a non-liquidating distribution when the partnership distributes property other than money with an inside basis greater than the partner's basis in the partnership interest.
c. A partner will recognize a gain from a non-liquidating distribution when the partnership distributes money in an amount that is less than the partner's basis in the partnership interest.
d. A partner will recognize a gain from a non-liquidating distribution when the partnership distributes money in an amount that is greater than the partner's basis in the partnership interest.
2 Under which of the following circumstances will a partner recognize a loss from a non-liquidating distribution?
a. A partner will never recognize a loss from a non-liquidating distribution.
b. A partner will recognize a loss from a non-liquidating distribution when the partnership distributes property other than money with an inside basis greater than the partner's basis in the partnership interest.
c. A partner will recognize a loss from a non-liquidating distribution when the partnership distributes money in an amount that is less than the partner's basis in the partnership interest.
d. A partner will recognize a loss from a non-liquidating distribution when the partnership distributes money in an amount that is greater than the partner's basis in the partnership interest.
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