A taxpayer has a $78,000 adjusted basis in an interest in a partnership prior to any distributions. At the end of the year, the partnership distributed cash of $35,000 and mutual fund shares with a fair market value of $28,000 and a basis of $19,000 in a nonliquidating distribution to the taxpayer. What amount of gain, if any, is the taxpayer required to recognize on the distribution

Answer rating: 100% (QA)

The taxpayer recognizes a gain of 9000 on the distribution Heres how we can break it down Cas... View the full answer