DavidS127
Expert Alumni

Retirement tax questions

The IRS guidance in IRS Publication 541 at this link is that the distribution in excess of the adjusted basis is capital gain.  It would be long term capital gain if it occurs more than one year after the date the partnership interest was granted.  In other words, the "sale date" is the date of distribution and the "acquired date" is the date the partnership interest was acquired.

 

@svnguyen99

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