Hollys tax basis in her one-third partnership interest is $30,000, consisting of her $20,000 net capital investment
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Question:
Holly’s tax basis in her one-third partnership interest is $30,000, consisting of her $20,000 net capital investment in the partnership, plus her $10,000 share of partnership liabilities. In complete liquidation of this interest, Holly receives a distribution of real property with a tax basis of $28,000 and a fair market value of $50,000. The property is encumbered by a $15,000 mortgage for which Holly assumes responsibility. The partnership has no hot assets. What will be Holly’s tax basis in the real property?
a) $28,000
b) $30,000
c) $50,000
d) $35,000
e) none of the above
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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