The XYZ partnership made the pro rata current distributions listed below during 20X9 and provided you with each partner’s outside basis immediately before the distributions as follows:

Distribution to	Partner’s Outside Basis	Current Distribution	Partner’s Recognized Gain or (Loss)	Remaining Outside Basis	Basis in Property Received
X	$50,000	$30,000 Property: FMV: $60,000 Basis: $5,000
Y	$40,000	$20,000 Property: FMV: $70,000 Basis: $50,000
Z	$20,000	$30,000 Property: FMV: $25,000 Basis: $15,000

Determine with regard to the distributions: (1) XYZ’s recognized gain or loss; (2) each partner’s recognized gain or loss; (3) each partner’s basis in the property received; (4) each partner’s remaining outside basis; and (5) the effect it has on the basis of the property not distributed by XYZ.

Answer rating: 100% (QA)

ANSWER 1 The XYZ partnership has no recognized gain or loss 2 In determining each par... View the full answer