Question

In each of the following independent cases in which the partnership owns no hot assets, indicate the following. All of the partners received proportionate distributions.
• Whether the partner recognizes gain or loss.
• Whether the partnership recognizes gain or loss.
• The partner's adjusted basis for the property distributed.
• The partner's outside basis in the partnership after the distribution.
a. Kimreceives$20,000ofcashinpartialliquidationofherinterestinthepartnership.Kim's out side basis for her partnership interest immediately before the distributions $3,000.
b. Kourtni receives $40,000 of cash and land with a $30,000 inside basis to the partner ship (value $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 of 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.


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  • CreatedMay 25, 2015
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