Can you help me understand this?
The LMO Partnership distributed $30,000 cash to Laura in a proportionate, nonliquidating distribution. Laura's basis in her partnership interest was $25,000 immediately before the distribution. As a result of the distribution, Laura's basis is reduced to ($5,000) (negative) and she recognizes no gain or loss.© BrainMass Inc. brainmass.com June 3, 2020, 10:21 pm ad1c9bdddf
The solution determines the truth in LMO partnerships for income tax.