Question: Partners Outside Basis Is Less Than Inside Basis of Distributed Assets Example 4: Distributions of money, inventory, and/or unrealized receivables Property Basis FMV Cash 256,000

Partners Outside Basis Is Less Than Inside Basis of Distributed Assets

Example 4: Distributions of money, inventory, and/or unrealized receivables

Property

Basis

FMV

Cash

256,000

256,000

Inventory A

50,000

128,000

Inventory B

25,000

17,000

Bobs basis in his partnership interest as of the liquidation is $334,000, including his $66,000 share of the partnerships liabilities.

What is Bobs recognized gain or loss on the distribution?

What is Bobs basis in the distributed assets following the liquidation?

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