Last year, Carla contributed investment land with an FMV of $24,000 and basis of $18,000 to...

 

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Last year, Carla contributed investment land with an FMV of $24,000 and basis of $18,000 to the FSU Partnership. FSU made no distributions during last year, and Carla's basis in her partnership interest on December 31 of last year was $28,000. On January 1 of this year, the partnership distributed cash of $30,000 to Carla and distributed the land contributed by Carla to another partner, Devin. On the distribution date, the land had a $27,000 FMV. Assume the FSU Partnership reported no profit or loss this year. a) How much gain (if any) must Carla recognize as a result of the distributions? b) What is her basis in the partnership after the distributions? Please show your calculations and explain your answers citing textbook references. Edit Format Table 12pt Paragraph BIUA 2T² ⠀ Last year, Carla contributed investment land with an FMV of $24,000 and basis of $18,000 to the FSU Partnership. FSU made no distributions during last year, and Carla's basis in her partnership interest on December 31 of last year was $28,000. On January 1 of this year, the partnership distributed cash of $30,000 to Carla and distributed the land contributed by Carla to another partner, Devin. On the distribution date, the land had a $27,000 FMV. Assume the FSU Partnership reported no profit or loss this year. a) How much gain (if any) must Carla recognize as a result of the distributions? b) What is her basis in the partnership after the distributions? Please show your calculations and explain your answers citing textbook references. Edit Format Table 12pt Paragraph BIUA 2T² ⠀

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On the disposal of the land to David Cara will realise a 6000 capital gain 24000 FMV at contr... View the full answer