Does he recognize any taxable gain on that distribution

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Question - Two years ago, Alfred contributed land with a FMV of $10,000 and a basis of $5,000 to the ABC partnership.  Today, Alfred has a basis in the partnership of $20,000. He receives a distribution of cash of $20,000. 

Required -

a) Does he recognize any taxable gain on that distribution? If so, why?

b) Assuming the land was contributed by Alfred five years ago. Would your answer to a) change and why or why not?

Reference no: EM132493973

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