Will is a one-third partner in Berkshire, LLC. His basis in his partnership interest is $50,000. In a non-liquidating distribution, Berkshire distributes to Will: $20,000 cash; Inventory A (FMV $20,000; Basis $32,000); Inventory B (FMV $36,000; Basis $20,000). What are the tax consequences of the distribution to Will. What basis does he take in the inventory items?
Will is a one-third partner in Berkshire, LLC. His basis in his partnership interest is $50,000. In a non-liquidating distribution, Berkshire distributes to Will: $20,000 cash; Inventory A (FMV $20,000; Basis $32,000); Inventory B (FMV $36,000; Basis $20,000). What are the tax consequences of the distribution to Will. What basis does he take in the inventory items?
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 12MCQ
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- Will is a one-third partner in Berkshire, LLC. His basis in his partnership interest is $50,000. In a non-liquidating distribution, Berkshire distributes to Will: $20,000 cash; Inventory A (FMV $20,000; Basis $32,000); Inventory B (FMV $36,000; Basis $20,000). What are the tax consequences of the distribution to Will. What basis does he take in the inventory items?
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