Justin and Lauren are equal partners in the PJenn Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests:

Partner Outside Basis

Justin $ $22,000$

Lauren $22,000$

On December $31$ of the current year, the partnership makes a pro$-$rata operating distribution of:

Partner Distribution

Justin Cash $ $25,000$

Lauren Cash $18,000$

Property $7,000($FMV$)$

$($$$2,000$ basis to partnership$)$

What is the amount of Justin's recognized gain or loss?

Answer rating: 100% (QA)

To calculate Justins recognized gain or loss from the partnership distribution we need to determine ... View the full answer