How much of the ordinary loss and ltcl should he report

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Partner D has a 25% interest in the profits/losses of the CDEF partnership. His share of the partnership's bottom line income/loss is ($40,000) and his share of the partnership's LTCL is ($20,000). At the start of the year his outside basis was $27,000.

During the year he received a cash distribution in the amount of $15,000. What is the amount of the gain/loss he must recognize as a result of the cash distribution, and how much of the ordinary loss and LTCL should he report on his individual income tax return for the year in question?

Reference no: EM132084537

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