Jordan, Tim, and Topanga are each partners in Normand, LLP. Jordan’s outside basis in her partnership interest is $30,000. Tim’s outside basis in his partnership interest is $40,000. Topanga’s outside basis in her partnership interest is $20,000. A. In a current distribution, Jordan receives $8,000 cash; inventory (FMV = $20,000; basis = $16,000); land (FMV = $8,000; basis = $10,000); and stock (FMV = $2,000; basis = $2,000). Does Jordan have any gain or loss? What basis does she take in the inventory, land, and stock? What is her basis in her partnership interest after the distribution? B. In a liquidating distribution, Tim receives $20,000 cash; inventory (FMV = $6,000; basis = $4,000); land (FMV = $30,000; basis = $20,000). Does Tim have any gain or loss? What basis does he take in the inventory and land? C. In a current distribution, Topanga receives $30,000 cash. Does Topanga have any gain or loss? What is her basis in her partnership interest after the distribution?
- Jordan, Tim, and Topanga are each partners in Normand, LLP. Jordan’s outside basis in her partnership interest is $30,000. Tim’s outside basis in his partnership interest is $40,000. Topanga’s outside basis in her partnership interest is $20,000.
A. In a current distribution, Jordan receives $8,000 cash; inventory (FMV = $20,000; basis = $16,000); land (FMV = $8,000; basis = $10,000); and stock (FMV = $2,000; basis = $2,000). Does Jordan have any gain or loss? What basis does she take in the inventory, land, and stock? What is her basis in her partnership interest after the distribution?
B. In a liquidating distribution, Tim receives $20,000 cash; inventory (FMV = $6,000; basis = $4,000); land (FMV = $30,000; basis = $20,000). Does Tim have any gain or loss? What basis does he take in the inventory and land?
C. In a current distribution, Topanga receives $30,000 cash. Does Topanga have any gain or loss? What is her basis in her partnership interest after the distribution?
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