Thank you, Patricia. But, I have an additional related question. §731(a)(1) says that "gain shall not be recognized to such partner, except to the extent that any money distributed exceeds the adjusted basis of such partner’s interest in the partnership immediately before the distribution..." I am a non-manager member of an LLC taxed as a partnership. How would I know what the basis of my partnership interest is immediately before each distribution (there were five distributions in 2021)? I couldn't find anything in the regulations that addressed that.
