Question

Gil’s outside basis in his interest in the GO Partnership is $100,000. In a proportionate nonliquidating distribution, the partnership distributes to him cash of $30,000, inventory (fair market value of $40,000, basis to the partnership of $20,000), and land (fair market value of $90,000, basis to the partnership of $40,000). The partnership continues in existence.
a. Does the partnership recognize any gain or loss as a result of this distribution? Explain.
b. Does Gil recognize any gain or loss as a result of this distribution? Explain.
c. Calculate Gil’s basis in the land, in the inventory, and in his partnership interest immediately following the distribution.


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  • CreatedSeptember 09, 2015
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