Linda has a $26,000 basis in her partnership interest before receiving a current distribution of $5,000...

 

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Linda has a $26,000 basis in her partnership interest before receiving a current distribution of $5,000 cash and land with a $36,000 FMV and a $12,000 basis to the partnership. Assume that any distribution involving Sec. 751 property is pro rata, that any precontribution gains have been recognized before the distribution, and that no Sec. 754 election is in effect. Read the requirements. Requirement a. Determine Linda's recognized gain or loss, Linda's basis in distributed property, and Linda's ending basis in her partnership interest. (Complete all answer boxes. Enter a "0" for any zero balances. Use a minus sign or parentheses to enter a loss.) Linda's recognized gain or loss is Linda's basis in the land is Linda's ending basis in her partnership interest is Requirements S $ a. b. How does your answer to Part a change if the partnership's basis in the land is $23,000 instead of $12,000? c. How does your answer to Part a change if Linda receives $29,000 cash instead of $5,000 (along with the land)? Determine Linda's recognized gain or loss, Linda's basis in distributed property, and Linda's ending basis in her partnership interest. d. How does your answer to Part a change if, in addition to the cash and land, Linda receives inventory with a $26,000 FMV and a $7,000 basis and receivables with a $6,000 FMV and a zero basis? e. Suppose instead that Linda receives the distribution in Part a from a C corporation instead of a partnership. The corporation has $110,000 of E&P-earnings and profits-before the distribution, and Linda's stock basis before the distribution is $26,000. What are the tax consequences to Linda and the C corporation? f. Suppose instead that Linda receives the distribution in Part a from an S corporation instead of a partnership. Linda is a 50% owner in the corporation, and her stock basis before the distribution is $26,000. What are the tax consequences to Linda and the S corporation? Print - X Done Linda has a $26,000 basis in her partnership interest before receiving a current distribution of $5,000 cash and land with a $36,000 FMV and a $12,000 basis to the partnership. Assume that any distribution involving Sec. 751 property is pro rata, that any precontribution gains have been recognized before the distribution, and that no Sec. 754 election is in effect. Read the requirements. Requirement a. Determine Linda's recognized gain or loss, Linda's basis in distributed property, and Linda's ending basis in her partnership interest. (Complete all answer boxes. Enter a "0" for any zero balances. Use a minus sign or parentheses to enter a loss.) Linda's recognized gain or loss is Linda's basis in the land is Linda's ending basis in her partnership interest is Requirements S $ a. b. How does your answer to Part a change if the partnership's basis in the land is $23,000 instead of $12,000? c. How does your answer to Part a change if Linda receives $29,000 cash instead of $5,000 (along with the land)? Determine Linda's recognized gain or loss, Linda's basis in distributed property, and Linda's ending basis in her partnership interest. d. How does your answer to Part a change if, in addition to the cash and land, Linda receives inventory with a $26,000 FMV and a $7,000 basis and receivables with a $6,000 FMV and a zero basis? e. Suppose instead that Linda receives the distribution in Part a from a C corporation instead of a partnership. The corporation has $110,000 of E&P-earnings and profits-before the distribution, and Linda's stock basis before the distribution is $26,000. What are the tax consequences to Linda and the C corporation? f. Suppose instead that Linda receives the distribution in Part a from an S corporation instead of a partnership. Linda is a 50% owner in the corporation, and her stock basis before the distribution is $26,000. What are the tax consequences to Linda and the S corporation? Print - X Done