Partner X, a 1 3 partner in XYZ Partnership, needs a distribution from the partnership for some unexpected bills The partnership, however, does not have any extra cash to distribute It will distribute land to the partner that has a value of $30,000 and a basis of $25,000 to the partnership X 's bas...

a There is no gain or loss recognized on the distribution of the land to Partner X Instead Partner h ...

Partner X, a 1/3 partner in XYZ Partnership, needs a distribution from the partnership for some unexpected

Question:

Partner X, a 1/3 partner in XYZ needs a from the for some unexpected bills. The however, does not have any extra cash to distribute. It will distribute land to the partner that has a value of $30,000 and a basis of $25,000 to the X's basis in his interest is $45,000.
How will this be treated for tax purposes?
a. Assume alternatively, that the sells the land for its fair market value and distributes the cash to Partner X. What are the tax consequences of the sale and Which alternative would you recommend to the Explain.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... 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...