A gain arises only on a distribution from a partnership of cash that exceeds the partner's basis in the partnership interest. For this purpose, only cash, checks, and credit card charges are treated as cash.

Question

Quizplus · Accepted Answer

A gain can arise on a distribution from a partnership not only from cash exceeding the partner's basis in the partnership interest but also from the distribution of marketable securities and other property. The definition of cash for this purpose does not limit to cash, checks, and credit card charges; it encompasses any form of money or liquid assets.

A Gain Arises Only on a Distribution from a Partnership