Generally, a distribution of property does not result in a gain to a partner on either a current or liquidating distribution.
A situation in which a gain may arise, however, is when a partner contributed appreciated property to the partnership and that property is distributed back to that same contributing partner within seven years of the contribution.

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The Answer of Generally, a distribution of property does not result in a gain to a partner on either a current or liquidating distribution.
A situation in which a gain may arise, however, is when a partner contributed appreciated property to the partnership and that property is distributed back to that same contributing partner within seven years of the contribution.

Generally, a Distribution of Property Does Not Result in a Gain