Megan has a basis of $120,000 in her partnership interest. She receives a current distribution consisting of land held for investment (basis of $100,000, fair market value of $130,000) and inventory (basis of $80,000, fair market value of $70,000). After the distribution, Megan’s bases in the land and inventory are, respectively:

Megan has a basis of $120,000 in her partnership interest. She receives a current distribution consisting of land held for investment (basis of $100,000, fair market value of $130,000) and inventory (basis of $80,000, fair market value of $70,000). After the distribution, Megan’s bases in the land and inventory are, respectively:

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 25CE

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Misha receives a proportionate nonliquidating distribution when the basis of her partnership interest is $60,000. The distribution consists of $80,000 cash and inventory (adjusted basis to the partnership of $10,000, fair market value of $20,000). How much gain or loss does Misha recognize, and what is her basis in the distributed inventory and in her partnership interest following the distribution?
At the beginning of the year, Elsie’s basis in her partnership interest is $90,000. She receives a current distribution from the partnership consisting of $10,000 of cash, accounts receivables (basis of $0, fair market value $40,000), and land (basis of $30,000, fair market value of $50,000). After the distribution, Elsie’s bases in the accounts receivable, land, and partnership interest are:
Misha receives a proportionate current (nonliquidating) distribution when the basis of his partnership interest is $60,000. The distribution consists of $80,000 cash and inventory (adjusted basis to the partnership of $10,000, fair market value of $20,000). How much gain or loss does Misha recognize, and what is his basis in the distributed inventory and in the partnership interest following the distribution? a.$20,000 capital gain; $0 basis in inventory; $0 basis in partnership interest. b.$20,000 ordinary income; $0 basis in inventory; $20,000 basis in partnership interest. c.$0 gain or loss; $20,000 basis in inventory; $50,000 basis in partnership interest. d.$0 gain or loss; $10,000 basis in inventory; $0 basis in partnership interest.
Blake and Ryan form the Poole Partnership. Blake contributes cash of $15,000. Ryan contributes land with an adjusted basis of $10,000 and a fair market value of $21,000. The land is subject to a $6,000 mortgage that Poole assumes. Blake and Ryan both receive a 50 percent interest in Poole. What is Ryan's recognized gain or loss on the contribution? a.$11,000 loss b.$5,000 gain c.$16,000 gain d.$4,000 loss e.None of these choices are correct.
At the beginning of the year, Elsie’s basis in the E&G Partnership interest is $80,000. She receives a proportionate current (nonliquidating) distribution from the partnership consisting of $20,000 of cash, unrealized accounts receivable (basis of $0, fair market value $40,000), and land (basis of $20,000, fair market value of $50,000). After the distribution, Elsie’s bases in the accounts receivable, land, and partnership interest are: a. $0; $30,000; and $50,000. b. $0; $50,000; and $30,000. c. $40,000; $30,000; and $10,000. d. $40,000; $40,000; and $0. e. $0; $20,000; and $40,000.
A and B form the equal AB partnership. A contributes cash of $20,000. B con- tributes land with a basis of $9,000 and a fair market value of $20,000. The land is a capital asset to B and has been held for over one year. Describe the tax consequences under each of the three I.R.C. §704(c) allocation methods if the partnership sells the land for either $21,000 or $19,000, assuming the partnership has adequate other income and deductions, if necessary.
Determine Julie's basis in her partnership interest and tax return effects. Also, determine Julie's basis in any property received as a distribution from the partnership
Partner Bob’s basis in his partnership interest is $50,000. What gain or loss is recognized, and what are Bob’s basis in the property received and his basis in his partnership interest, if the partnership makes the following independent proportionate nonliquidating distributions? Partnership distributes $8,000 of inventory value with a $5,000 basis. Partnership distributes two parcels of land, each with a value of $30,000. The partnership’s basis in parcel A is $40,000 and in parcel B is $20,000.
Marisa received a distribution from the LMP Partnership of property with a bisis to the partnership of $ 15,000. At the time of the distribution, Marisa's basis in the partnership was $25,000. What was her basis int he partnership after the distribution. A. $0. B. $10,000. C. $15,000. D. $25,000.
1. What is Phillip’s recognized gain or loss on the distribution? 2. What is the partnership’s recognized gain or loss? 3. After the distribution, what is Phillip’s basis in the receivables?
Tamara owns interest in two different entities: a partnership and an S-Corp. Her basis in the partnership is $40,000. Her basis in the S-Corp is 23,250. Tamara is the sole owner of the S-Corp. a. Assume the partnership gives a current distribution to Tamara of $30,000 cash and land worth $20,000 (basis of $15,000). Determine the following: 1. Basis of Tamara's Partnership Interest_ 2. Basis of Land to Tamara b. Independent of part (a), assume the partnership gives a liquidating distribution to Tamara of $30,000 cash and two pieces of equipment. Equipment 1 is worth 3,000 (basis: 3,000) and equipment two is worth 2,000 (basis: 0). Compute the following: 1. Basis of Tamara's Partnership Interest 2. Basis of equipment 1 to Tama 3. Basis of equipment 2 to Tamara c. Tamara received a cash distribution of $25,500 from her S-Corp. Corporate-level accounts at the end of the year were as follows. $9,000 13,500 AAA OAA Accumulated E & P 900 Fill out the following table to determine how Tamara's…