Amy is a partner in Xiowa Partners. Her basis in her partnership interest is $69,000.

In a non-liquidating distribution, Amy received three properties, Property 1 was worth $20,000 and had a tax basis of

$30,000. Property 2, valued at $18,000 had a tax basis of $23,000. Property 3 was worth

$32,000 and had a tax basis of $22,000.

Assume all three properties are capital assets.

a. Will Amy recognize any taxable gain or loss on receipt of the non-liquidating distribution?

b. What basis will Amy take in properties 1, 2 and 3?

c. What will be Amy’s remaining tax basis in her partnership interest?

d. Would your answers above be different if the distribution had been in complete liquidation of Amy’s partnership interest?