Brian is a 25% partner inthe BC Partnership. On January 1, BC distributes $20,000 cash andland with a $16,000 fair value (inside basis $8,000) to Brian. BChas no liabilities at the date of the distribution. Brian’s basisin BC is $16,000. What is the amount and character of Brian’s gainor loss on the distribution?




$4,000 capitalgain


$12,000 capitalgain


$20,000 capitalgain


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