1.. Kathy is a 25% partner in the KDP Partnership and receives a parcel of land with a fair value of $150,000 (inside basis of $102,000) in complete liquidation of her partnership interest.

Kathy's outside basis immediately before the distribution is $200,000.

KDP currently has a Section 754 election in effect and has no hot assets or liabilities.

What is KDP's special basis adjustment from the distribution?

2.Alexis transferred $470,000 to a trust with directions to pay income to her spouse, William, for his life. After William's death the corpus of the trust will pass to William's son.

If the life estate is valued at $73,000, what is the total amount of the taxable gifts?

Assume some figures if you think some data is/are lacking.

Answer rating: 100% (QA)

Solution 1 1 Kathy is a 25 partner in the KDP Partnership and receives a parcel of land with a fair ... View the full answer