distributee

I find it unlikely that the courts would consider your mother the only distributee in the absence of a will.

The downside of deferral, however, is that in order to ensure that any gain in the partnership’s assets is��preserved, a complex��set of rules governing the distributee partner’s basis in the distributed property is required.

If a partner has a basis adjustment for a partnership property and that property is distributed to another partner, the basis adjustment is not taken into account in determining the distributee partner’s basis in the distributed property.

This is done to prevent the same economic gain from being taxed twice, once by the distributee partner, and again��by the partnership.

Both the distributee partner’s recognition of loss and an increase in the basis of the distributed property are only caused by liquidating distributions.