Last year, Cara contributed investment land with a FMV of $24,000 and basis of $18,000 to the CDE Partnership. CDE made no distributions during the last year, and Cara's basis in her partnership interest on December 31 of last year was $28,000. On January 1 of this year, the partnership distributed cash of $30,000 to Cara and distributed the land contributed by Cara to another partner, David. On the distribution date, the land had a $27,000 FMV. Assume the CDE Partnership reported no profit or loss this year. What are the tax consequences of the distributions to the partners? NEED DAVID'S BASIS
Last year, Cara contributed investment land with a FMV of $24,000 and basis of $18,000 to the CDE Partnership. CDE made no distributions during the last year, and Cara's basis in her partnership interest on December 31 of last year was $28,000. On January 1 of this year, the partnership distributed cash of $30,000 to Cara and distributed the land contributed by Cara to another partner, David. On the distribution date, the land had a $27,000 FMV. Assume the CDE Partnership reported no profit or loss this year. What are the tax consequences of the distributions to the partners? NEED DAVID'S BASIS
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Last year, Cara contributed investment land with a FMV of $24,000 and basis of $18,000 to the CDE Partnership . CDE made no distributions during the last year, and Cara's basis in her partnership interest on December 31 of last year was $28,000. On January 1 of this year, the partnership distributed cash of $30,000 to Cara and distributed the land contributed by Cara to another partner, David. On the distribution date, the land had a $27,000 FMV. Assume the CDE Partnership reported no profit or loss this year. What are the tax consequences of the distributions to the partners? NEED DAVID'S BASIS
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