Tone's basis in Ace Partnership was $70,000 at the time he received a non-liquidating distribution of partnership capital assets. These capital assets had an adjusted basis of $65,000 to Ace and a fair market value of $83,000. Ace had no unrealized receivables, appreciated inventory, or properties that had been contributed by its partners. What was Stone's recognized gain or loss on the distribution?

Stone's basis in Ace Partnership was $70,000 at the time he received a non-liquidating distribution of partnership capital assets. These capital assets had an adjusted basis of $65,000 to Ace and a fair market value of $83,000. Ace had no unrealized receivables, appreciated inventory, or properties that had been contributed by its partners. 

What was Stone's recognized gain or loss on the distribution?

Answer rating: 100% (QA)

To calculate Stones recognized gain or loss on the nonliquid... View the full answer