Cadwallader has held a 30% interest in C&C Associates, a partnership, since 2010. This year, the partnership

Question:

Cadwallader has held a 30% interest in C&C Associates, a partnership, since 2010. This year, the partnership liquidated. At that time, Cadwallader received a liquidating distribution of $30,000 of cash (only). Her basis in her partnership interest was $34,500. Just before the liquidating distribution, the partnership’s assets consisted of $50,000 in cash and land (a § 1231 asset to the partnership) with a fair market value of $60,000 and a basis of $65,000. C&C Associates has no liabilities. What amount and type of loss should Cadwallader recognize on her current tax return?

a. $4,500 ordinary loss

b. $4,500 long-term capital loss

c. $4,500 short-term capital loss

d. $0

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...