Question

Benny is a partner in the BEN partnership.His outside basis is $250. He receives a distribution of land worth $400 which has a basis inside the partnership of $130.

a)Is the distribution taxable to Benny?If not, why not?

b)What is Benny’s outside basis after the distribution?

c)Assume this was a non-liquidating distribution.What is Benny’s basis in the land?

d)Assume this was a liquidating distribution, what is Benny’s basis in the land after the distribution?

Answer #1

benny is a partner in the ben partnership. his outside basis is
$250. he receives a distribution of land worth $400 which has a
basis inside the partnership of $130
a)is the distribution taxable to Benny? if not, why not?
b)what is Benny's outside basis after the distribution?
c)assume this was a non-liquidating distribution. what is
Benny's basis in the land?
d)assume this was a liquidating distribution, what is Benny's
basis in the land after the distribution?

Partner Z of the XYZ
partnership receives a liquidating distribution of the
following:
Basis
FMV
Cash
$40,000
$40,000
Inventory
$30,000
$45,000
Unrealized receiv.
$50,000
$45,000
1. Z’s basis in her
partnership interest was $95,000. What is her gain or loss and the
bases of the assets distributed to her?
2. Assume Z’s basis
in her partnership interest was $130,000. What is her gain or loss
and the bases of the assets distributed to her?
The capital
percentages are already factored...

Partner N of the LMN partnership receives a liquidating
distribution of the following:
Basis FMV
Cash
$50,000 $50,000
Inventory $35,000 $45,000
Unrealized Receiv.
$75,000 $53,000
Land
$30,000 $45,000
N’s basis in her partnership interest was $275,000. What is her
gain or loss and the bases of the assets distributed to her?

Please explain the difference
1. Under which of the following circumstances will a partner
recognize a gain from a non-liquidating distribution?
a. A partner will never recognize a gain from a non-liquidating
distribution.
b. A partner will recognize a gain from a non-liquidating
distribution when the partnership distributes property other than
money with an inside basis greater than the partner's basis in the
partnership interest.
c. A partner will recognize a gain from a non-liquidating
distribution when the partnership distributes...

4. Assume a partnership makes a distribution of land used in
their business to a 70% owner. The partnership purchased the land
for $480,000. At the time of the distribution, the land has a FMV
of $600,000. The partner’s outside basis is $550,000.
a. What is the tax result to the partnership and the partner on
this distribution if it were a non liquidating distribution? (2
Points)
b. What is the tax result to the partnership and the partner on...

What is the tax treatment to a partner who receives a
liquidating distribution assuming the partnership has made a
Section 754 election. The distribution was cash of $10,000 and
capital assets of $30,000. The partner's basis before the
distribution was $50,000. What is the gain or loss for the partner,
the cash basis after the distribution, capital assets basis, and
Section 734 Adjustment?

A is a partner in the ABC cash method partnership, has an
outside basis of $10,000. In a pro rata operating distribution to
the partners, A receives a parcel of land held as inventory by the
partnership with a basis of $2,000 and a value of $3,000 and zero
basis accounts receivable with a value of $3,000. Both properties
become capital assets in her hands. Six years later, she collects
the receivables and sells the parcel for $3,000.
(a) What...

Benny receives 40 shares of Cougar Corporation Stock with a fair
value of $540,000 plus $60,000 cash in exchange for his transfer of
inventory, a building, and land to Cougar. Assume the rules of §351
were met and all property is free of liabilities. The property
transferred to the corporation had the following fair market value
and adjusted bases:
FMV
ADJ. TAX BASIS
GAIN REALIZED
INVENTORY
$70,000
$65,000
$5,000
BUILDING
$380,000
$330,000
$50,000
LAND
$150,000
$105,000
$45,000
TOTAL
$600,000
$500,000...

Assume a partnership makes a distribution of inventory to an 80%
owner. The partnership purchased the inventory for $500,000. At the
time of the distribution, the inventory has a FMV of $200,000. The
partner’s outside basis is $440,000.
a. What is the tax result to the partnership and the partner on
this distribution if it were a non-liquidating distribution? There
is no gain or loss recognized by the partnership or partner. b.
What is the tax result to the partnership...

Tom is a partner in TXY partnership. His adjusted basis in the
partnership is $30,000. During the year, he receives the following
distributions:
AB
FMV
Cash
$25,000
$25,000
Property
$25,000
$50,000.
These are non-liquidating, proportionate, pro-rata
distributions.
a. What gain, if any, must Tom recognize on these
distributions?
b. What is Tom’s basis in the property?

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