Kelly is a one-third partner in Bayside, LLP. Kelly’s outside basis in her partnership interest is $45,000. The partnership has no debt. In a current distribution, Kelly receives $12,000 cash; inventory (FMV = 30,000; basis = $24,000); land (FMV = $12,000; basis = $15,000); and stock (FMV = $3,000; basis = $3,000). Does Kelly have any gain or loss? What basis does she take in the inventory, land, and stock?
Kelly is a one-third partner in Bayside, LLP. Kelly’s outside basis in her partnership interest is $45,000. The partnership has no debt. In a current distribution, Kelly receives $12,000 cash; inventory (FMV = 30,000; basis = $24,000); land (FMV = $12,000; basis = $15,000); and stock (FMV = $3,000; basis = $3,000). Does Kelly have any gain or loss? What basis does she take in the inventory, land, and stock?
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 47P
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Kelly is a one-third partner in Bayside, LLP. Kelly’s outside basis in her
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