Update on Form 7217

We respond to a reader's question on yesterday's post

Photo by Nathan Anderson on Unsplash

In yesterday’s post we discussed the new Form 7217 that will be required to be used if there is a property distribution to a partner.

In the post we provided an example of a distribution of cash and property, and we used Google as an example of property being distributed. A reader sent in an email thinking that marketable securities is treated just like cash and thus gain might be appropriate since cash received exceeded the Patty’s basis in the partnership.