The Boyle brothers own and operate a microbrewery The partnership has 2 equal partners, Ed and John At the close of the current year, Johns basis in the partnership is $42,000, and Eds basis is $31,000 What are the tax and basis effects if at year end, the partnership distributes to Ed a Property w...

a If a partner receives a nonliquidating distribution of property the partners ...

The Boyle brothers own and operate a microbrewery. The partnership has 2 equal partners, Ed and John.

Question:

The Boyle brothers own and operate a microbrewery. The has 2 equal partners, Ed and John. At the close of the current year, John’s basis in the is $42,000, and Ed’s basis is $31,000. What are the tax and basis effects if at year end, the distributes to Ed
a. Property with a basis of $15,000 and a fair market value of $18,000?
b. Property with a basis of $12,000 and a fair market value of $35,000 along with $10,000 in cash?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...