Question: In each of the following independent cases in which the

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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