At 1/1/19, Neils basis in his Partnership interest is 100,000. At the end of the year, his

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Question:

At 1/1/19, Neil’s basis in his Partnership interest is 100,000. At the end of the year, his allocated share of Partnership Ordinary Business Income was 12,000. He then received the following as a current distribution from the Partnership: Cash $40,000 Capital Asset valued at 80,000 (basis 70,000)

Required:

Calculate:

a. Partnership gain/loss on the distribution

b. Partner’s gain/loss related to the distribution

c. Partner ending Outside basis at the end of the year

d. Partner Basis in the Asset received