Edna was a one-third partner in OldGrad Partners until December 31, when her interest in the partnership
Question:
Edna was a one-third partner in OldGrad Partners until December 31, when her interest in the partnership was liquidated. Prior to the liquidation, her basis in her partnership interest was \(\$ 45,000\). She received \(\$ 15,000\) cash and property with a tax basis (to the partnership) of \(\$ 50,000\) and a fair market value of \(\$ 64,000\) in complete liquidation of her interest. The distribution was not a disproportionate distribution under Section 751 (b).
a. How much gain or loss will Edna recognize upon receipt of the distribution?
b. What basis will she take in the property received from the partnership?
Step by Step Answer:
a To determine the gain or loss that Edna will recognize upon receipt of the distribution we need to ...View the full answer
CCH Federal Taxation 2019 Comprehensive Topics
ISBN: 9780808049081
2019 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback
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