Nonliquidating

On that date the partnership liquidates and distributes to Joseph a proportionate distribution of ,000 cash and inventory with an inside basis to the partnership of ,000 and a fair market value of ,000.In addition, Joseph receives a safe which has an inside basis and fair market value of ,500 and ,000, respectively. The distribution consists of ,000 cash and property with an adjusted basis to the partnership of 0,000 and a fair market value of 0,000.

nonliquidating-67

$0 loss; $20,000 basis $14,000 loss; $6,000 basis $5,000 loss; $-0- basis $15,500 loss; $4,500 basis None of the above Questions include: 1.

computation of basis of noncash property distribution to partners 2.

She contributed a parcel of this land (basis $40,000; fair market value $48,000) to a partnership, which will also hold it as inventory.

After three years, the partnership sells the land for $60,000. Juliet contributed property with a $48,000 basis and fair market value of $100,000 to the JT Partnership in exchange for a 40% interest in partnership capital and profits.

The partnership will recognize a $20,000 capital gain on sale of the property. During the first year of partnership operations, JT had net taxable income of $40,000 and tax-exempt income of $80,000.

The partnership distributed ,000 cash to Juliet.

As a result of the distribution, Molly recognizes a gain of ,000 and her basis in the land is ,000. Her allocable share of Lime's passive ordinary losses from a nonrealty activity for the current year is (0,000).

Sydney has a 5,000 adjusted basis (outside basis) for her interest in Lime (before deduction of any of the passive losses).

Micah contributed ,000 cash and land with a basis of ,000 and a fair market value of ,000. Piper received a 50% interest in partnership capital and profits in exchange for contributing land with a basis of 0,000 and a fair market value of 0,000.

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