Partner Q of the QBT Partnership died during the year and Q's interest was inherited by her spouse, Ted. QBT was a service partnership. The fair market value of Q's interest at death was $100,000 but that included Q's share of 30,000 of unrealized accounts receivable and a $50,000 payment for Q's share of goodwill specifically provided by the partnership agreement. What is Ted's basis in the inherited partnership interest?

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 26P
icon
Related questions
Question

Partner Q of the QBT Partnership died during the year and Q's interest was inherited by her spouse, Ted. QBT was a service partnership. The fair market value of Q's interest at death was $100,000 but that included Q's share of 30,000 of unrealized accounts receivable and a $50,000 payment for Q's share of goodwill specifically provided by the partnership agreement. What is Ted's basis in the inherited partnership interest?

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage