The LizMack LLC distributes the following assets to its member
The LizMack LLC distributes the following assets to its member, Liz.
• $20,000 cash.
• Inventory with a $20,000 value and a $10,000 basis to the entity.
• A parcel of land with a $30,000 value and a $35,000 basis to the entity.
What issues must be considered in determining the Federal income tax treatment of the distribution?
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