# Question

Assume the facts of Problem 27. In each independent case, are additional planning opportunities available to the partnership to maximize its inside basis in its assets? If so, by how much can the basis be increased? What is the effect of any basis increase to the distributee partner or the other partners?

In probem

a. Kim receives $20,000 cash in partial liquidation of her interest in the partnership. Kim’s outside basis for her partnership interest immediately before the distribution is $3,000.

b. Kourtni receives $40,000 cash and land with an inside basis to the partnership of $30,000 (value of $50,000) in partial liquidation of her interest. Kourtni’s outside basis for her partnership interest immediately before the distribution is $80,000.

c. Assume the same facts as in (b), except that Kourtni’s outside basis for her partnership interest immediately before the distribution is $60,000.

d. Klois receives $50,000 cash and inventory with a basis of $30,000 and a fair market value of $50,000 in partial liquidation of her partnership interest. Her basis was $90,000 before the distribution. All partners received proportionate distributions.

In probem

a. Kim receives $20,000 cash in partial liquidation of her interest in the partnership. Kim’s outside basis for her partnership interest immediately before the distribution is $3,000.

b. Kourtni receives $40,000 cash and land with an inside basis to the partnership of $30,000 (value of $50,000) in partial liquidation of her interest. Kourtni’s outside basis for her partnership interest immediately before the distribution is $80,000.

c. Assume the same facts as in (b), except that Kourtni’s outside basis for her partnership interest immediately before the distribution is $60,000.

d. Klois receives $50,000 cash and inventory with a basis of $30,000 and a fair market value of $50,000 in partial liquidation of her partnership interest. Her basis was $90,000 before the distribution. All partners received proportionate distributions.

## Answer to relevant Questions

Cari Hawkins is a 50% partner in the calendar year Hawkins-Henry Partnership. On January 1, 2015, her basis in her partnership interest is $160,000. The partnership has no taxable income or loss for the current year. In a ...Use the assets and partners’ bases from Problem 31. Assume that the partnership distributes all of its assets in a liquidating distribution. In deciding the allocation of assets, what issues should the partnership consider ...Assume the same facts as in Problem 39, except that Jamie receives $2,000 cash and a car having a basis of $20,000 to the partnership and a fair market value of $30,000. a. How much loss, if any, may Jamie recognize on the ...Assume in Problem 47 that Barry’s partnership interest is not sold to another partner. Instead, the partnership makes a liquidating distribution of $90,000 cash to Barry, and the remaining partners assume his share of the ...Your client, Paul, owns a one-third interest as a managing (gen eral) partner in the service-oriented PRE LLP. He would like to retire from the limited liability partnership at the end of 2016 and asks your help in ...Post your question

0