Partner X has an outside basis of ,000. In a non-liquidating distribution, X receives cash of ,000 and property with a basis to the partnership of ,000 (FMV ,000). What is X's basis in the property received and ending outside basis?

In a non-liquidating distribution, cash reduces basis first (,000 - ,000 = ,000). The property then takes a carryover basis, limited to the partner's remaining outside basis. Since only ,000 basis remains, the property basis is stepped down to ,000, and outside basis becomes 0.