What is Angela's basis in Property 2 immediately following the distribution? What is Angela's basis in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
What is Angela's basis in Property 2 immediately following the distribution? What is Angela's basis in Property 1 immediately following the distribution? The Cartwright Partnership has the following balance sheet on December 31, 2021: Basis FMV $ 30,000 $30,000 0 45,000 54,000 60,000 36,000 45,000 $120,000 $180,000 Cash Accounts receivable Property 1 Property 2 Total assets Capital, Ben Capital, Joe Capital, Angela Total liabilities and capital $ 40,000 $60,000 40,000 60,000 40,000 60,000 $120,000 $180,000 Property 1 and Property 2 are tracts of land held as investments by the partnership. Each partner's outside basis in the partnership interest is equal to the inside basis of $40,000. Treat items (a), (b), and (c) below as independent from each other. a. On January 1, 2022, the partnership distributed Property 1 to Angela in complete liquidation of her interest in the partnership. 1. Is this distribution a disproportionate distribution within the meaning of Code Section 751? 2. Will Angela recognize any income or gain in connection with the distribution? If so, how much and what kind of income is it? 3. What is Angela's basis in Property 1 immediately following the distribution? b. On January 1, 2022, the partnership distributed the accounts receivable plus $15,000 cash to Angela in complete liquidation of her interest in the partnership. 1. Is this distribution a disproportionate distribution within the meaning of Code Section 751? 2. Will the partnership recognize any income or gain in connection with the distribution? If so, how much and what kind of income is it? c. On January 1, 2021, the partnership distributed Property 2 and one-third of the accounts receivable to Angela in complete liquidation of her interest in the partnership. 1. Is this distribution a disproportionate distribution within the meaning of Code Section 751? 2. Will Angela recognize any income or gain in connection with the distribution? If so, how much and what kind of income is it? 3. What is Angela's basis in Property 2 immediately following the distribution? What is Angela's basis in Property 2 immediately following the distribution? What is Angela's basis in Property 1 immediately following the distribution? The Cartwright Partnership has the following balance sheet on December 31, 2021: Basis FMV $ 30,000 $30,000 0 45,000 54,000 60,000 36,000 45,000 $120,000 $180,000 Cash Accounts receivable Property 1 Property 2 Total assets Capital, Ben Capital, Joe Capital, Angela Total liabilities and capital $ 40,000 $60,000 40,000 60,000 40,000 60,000 $120,000 $180,000 Property 1 and Property 2 are tracts of land held as investments by the partnership. Each partner's outside basis in the partnership interest is equal to the inside basis of $40,000. Treat items (a), (b), and (c) below as independent from each other. a. On January 1, 2022, the partnership distributed Property 1 to Angela in complete liquidation of her interest in the partnership. 1. Is this distribution a disproportionate distribution within the meaning of Code Section 751? 2. Will Angela recognize any income or gain in connection with the distribution? If so, how much and what kind of income is it? 3. What is Angela's basis in Property 1 immediately following the distribution? b. On January 1, 2022, the partnership distributed the accounts receivable plus $15,000 cash to Angela in complete liquidation of her interest in the partnership. 1. Is this distribution a disproportionate distribution within the meaning of Code Section 751? 2. Will the partnership recognize any income or gain in connection with the distribution? If so, how much and what kind of income is it? c. On January 1, 2021, the partnership distributed Property 2 and one-third of the accounts receivable to Angela in complete liquidation of her interest in the partnership. 1. Is this distribution a disproportionate distribution within the meaning of Code Section 751? 2. Will Angela recognize any income or gain in connection with the distribution? If so, how much and what kind of income is it? 3. What is Angela's basis in Property 2 immediately following the distribution?
Expert Answer:
Answer rating: 100% (QA)
Based on the information provided in your previous question ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these law questions
-
1. Betty contributed property with a $40,000 basis and fair market value of $85,000 to the Rust Partnership in exchange for a 50% interest in partnership capital and profits. During the first year of...
-
Among the ledger accounts used by Glenwood Speedway are the following: Prepaid Rent, Rent Expense, Unearned Admissions Revenue, Admissions Revenue, Prepaid Printing, Printing Expense, Concessions...
-
In our legal system, the use of DNA as forensic evidence is often regarded as the most reliable type of evidence. However, most of the DNA code is the same for all humans. Consequently, assessing the...
-
The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers. Hull and Inverted V are located across the street from each...
-
Axial dispersion in channel flow. Consider the pressure-driven laminar flow in a channel of height \(2 h\). Derive the following formula for the axial dispersion coefficient: \[D_{\mathrm{E}}=\frac{2...
-
The Pew Research Center has conducted extensive research on the young adult population (Pew research website, November 6, 2012). One finding was that 93% of adults aged 18 to 29 use the Internet....
-
Set up an iterated triple integral in the order dxdzdy that gives the volume of the solid in the first octant enclosed by the xz-plane, the plane 2x + y +2z = 8, and the parabolic cylinder y = x. Do...
-
A painting operation is scheduled in blocks, where each block involves painting products with a particular color. Cleaning time is required in between each pair of blocks so that the equipment can be...
-
4) Which one of the following retailers would be the best fit for a product? (Highlight one answer) a. Walmart - a full-line discount supercenter b. 24-Hour Fitness - a gym/fitness center with retail...
-
Briefly comment and point out something interesting from the following post: As Mr. Peters, I would first evaluate the exchange rate risk by analyzing historical trends and economic factors impacting...
-
What is a business plan? Why do companies prepare business plan? Have you ever created or read about a business plan prior to this course? Include references.
-
How would you expect the price elasticity of demand for health care to vary with health status? Would the demand for health care increase or decrease with an improvement in educational attainment in...
-
Malik works as an analyst in the mergers and acquisition department at Silverman Bachs. The company is assessing the risk of buying a competitor's company but finds a significant amount of risk,...
-
What does the process of writing a business plan force the entrepreneur to do? 2. How does a well-written business plan benefit an entrepreneur? 3. What two factors determine which type of business...
-
a. Mr Ma and Mr Fan are owners of a property in Shamshuipo with ownership ratio of 40% to 60%. The property was let to Mr Ng for many years under the following terms: (a) Monthly rent: $10,000 (b)...
-
From a medical tourist perspective, compare Shouldice with the traditional hospital in terms of the key factors of competition. Using Table 15-3, why would Shouldice attract patients from outside the...
-
Jenny earns $34,500 in 2012. Calculate the FICA tax that must be paid by: Jenny: ..............................Soc,Sec. ..................$______________...
-
Lisa Sizemore, a taxpayer in the 10-15 percent tax bracket, purchased stock as an investment on July 11, 2011. She sold the stock on July 9, 2012, 2 days before qualifying for the long-term holding...
-
Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. a. Assuming Phil's wages were $27,000 and Linda's wages were...
-
A light ray travels from medium l to medium 3 as shown. For these media, A. nz > n 13 B. n3 = n nz C. n3
-
A Jens produces a sharply focused, inverted image on a screen. What will you see on the screen if the lens is removed? A. The image will be inverted and blurry. B. The image will be upright and...
-
An object and lens are positioned to form a well-focused, inverted image on a viewing screen. Then a piece of cardboard is lowered just in front of the lens to cover the top half of the lens. Using...
Study smarter with the SolutionInn App