Question: Question 4 8 : Scott owns a 3 0 % interest in the capital and profits of the SOS Partnership. Immediately before he receives a

Question 48:
Scott owns a 30% interest in the capital and profits of the SOS Partnership. Immediately before he receives a proportionate current (nonliquidating) distribution from SOS, his basis in his partnership interest is $40,000. The distribution consists of $30,000 in cash and land with a fair market value of $80,000. SOSs adjusted basis in the land immediately before the distribution is $10,000. As a result of the distribution, Scott recognizes no gain or loss and his basis in the land is $10,000.

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