Whitney has a $50,000 outside tax basis in the VWX partnership. Whitney receives the following assets...

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Whitney has a $50,000 outside tax basis in the VWX partnership. Whitney receives the following assets in a current (nonliquidating) distribution: Distributed TB FMV Cash 10,000 10,000 Accts. Receivable 10,000 8,000 Depreciable Equipment 20,000 Capital Asset #1 20,000 60,000 Capital Asset #2 25,000 20,000 Total Distributed 65,000 118,000 Assume (i) the sec. 751 assets she received in the distribution represents her proportionate share of sec. 751 assets and (ii) the original cost of the depreciable equipment was $30,000 (so the full fair market value represents depreciation recapture). a. What is Whitney's tax basis in each of the assets after the distribution? b. What is Whitney's remaining outside tax basis after the distribution? c. How much gain or loss does Whitney recognize on the distribution? Whitney has a $50,000 outside tax basis in the VWX partnership. Whitney receives the following assets in a current (nonliquidating) distribution: Distributed TB FMV Cash 10,000 10,000 Accts. Receivable 10,000 8,000 Depreciable Equipment 20,000 Capital Asset #1 20,000 60,000 Capital Asset #2 25,000 20,000 Total Distributed 65,000 118,000 Assume (i) the sec. 751 assets she received in the distribution represents her proportionate share of sec. 751 assets and (ii) the original cost of the depreciable equipment was $30,000 (so the full fair market value represents depreciation recapture). a. What is Whitney's tax basis in each of the assets after the distribution? b. What is Whitney's remaining outside tax basis after the distribution? c. How much gain or loss does Whitney recognize on the distribution?

Answer rating: 100% (QA)

a Whitneys tax basis in each of the assets after the distribution is as foll... View the full answer