I'm in a position where a business in which I am a partner is not performing and we will be selling it to where my allocation of the sale will be far below my adjusted basis. I have a current Equity position of $79,000 - $23,000 of which is cash invested at the onset, and the rest is taxable income increasing my basis. I will be "receiving" a tax value of $29,000 for this value via debt payoff and lease absolution. Please don't tell me I have a taxable gain on the sale since I only invested $23,000?