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B. Patrick will not be required to report a gain on his return and will have a basis in his partnership interest of negative $3,000. A. Patrick will be required to report a $3,000 gain due to the negative basis rules and will have a basis in his partnership interest of zero. Which of the following statements is correct? A. Patrick will be required to report a $3,000 gain due to the negative basis rules and will have a basis in his partnership interest of zero. B. Patrick will not be required to report a gain on his return and will have a basis in his partnership interest of negative $3,000. C. Patrick will be required to report a $21,000 gain due to the negative basis rules and will have a basis in his partnership interest of zero. D. Patrick will not be required to report a gain on his return but the gain will increase the basis of his partnership interest.
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