The balance sheet of equal Partnership OTR, expanded to show asset values, is as follows: On formation,
Fantastic news! We've Found the answer you've been seeking!
Question:
The balance sheet of equal Partnership OTR, expanded to show asset values, is as follows:
On formation, Osgood contributed Land 0, Theo contributed the marketable securities and Raeburn contributed cash which was later used to purchase New Property A and New Property B. The partnership is not an investment partnership described in section 721(b) due to its substantial land holdings. What are the tax consequences to Osgood and Theo if the partnership distributes all its marketable securities to Osgood in liquidation of his interest?
- Theo, $0 gain; Osgood, $0 gain
- Theo, $50,000 gain; Osgood, $0 gain
- Theo, $50,000 gain; Osgood, $60,000 gain
- Theo, $50,000 gain; Osgood, $100,000 gain
Posted Date: