In addition to the general computational rules discussed at B7.406, B7.408, specific rules apply when either partnership assets are transferred out of the partnership to the partners or a partner contributes an asset to the partnership. These situations are discussed below.
Distributions of partnership assets to partners
A partnership may decide that a particular asset is no longer needed for the partnership business, but, instead of selling it, agree to distribute it in kind to one or more of the partners.
If the distribution is made to all the partners in accordance with their sharing ratio, there is no disposal by any of them and each partner will have the same base cost as before the distribution.
However, if the asset is not distributed to all the partners, or not in accordance with the normal sharing ratio, special rules apply. In such a case, either the partners who do not receive a share in the asset (or receive a share less than their normal entitlement) will receive other value or the partners
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