AliciaP1
Expert Alumni

Business & farm

No, it's not a wash.  You have an increase in your basis because you contributed the money to the partnership and the partnership has a Loan from Partner X on the balance sheet.  When the partnership pays you back for the loan, it decreases both the loan amount due to you from the partnership as well as your basis because your contribution is being distributed back to you.

 

@hero2

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