Three years ago,Mario joined the MN Partnership by contributing land with a $10,000 basis and an $18,000 FMV. On January 15 of the current? year,Mario has a basis in his partnership interest of $20,000?,and none of his precontribution gain has been recognized. On January? 15, Mario receives a current distribution of a property other than the contributed land with a $15,000 basis and a $23,000 FMV.

Requirements

a.	Does Mario recognize any gain or loss on the? distribution?
b.	What is Mario?'s basis in his partnership interest after the? distribution?
c.	What is the? partnership's basis in the land Mario contributed after Mario receives this? distribution?

Answer rating: 100% (QA)

a Because Mario does not receive cash in excess of his partnership basis he recognizes no gain under ... View the full answer