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Problem 1: Which of the following transactions will NOT cause the partnership's inside basis in the assets to differ from the partner's outside basis in their partnership interest?
A. The sale of a partnership interest by an existing partner to an outsider at a price that exceeds the partnership's basis in the underlying assets.
B. When the partnership distributes cash to a partner in excess of the partner's basis in his partnership interest.
C. When a partner receives a liquidating distribution & the partner takes a substituted basis in the distributed property equal to his outside basis without regard to the partnership's basis in the distributed assets/
D. All of the above will cause differences between inside & outside basis.
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