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

a

Distribution is not taxable as distribution is not in excess of basis in partnership. Partner’s outside basis before distribution is $250. Partnership land has $130 basis to partnership. Distribution reduces partner’s outside basis by $130.

b

Outside basis = Basis before distribution – basis in land = $250 - $130 = $120

c

In non-liquidating distribution basis in land received is equal to basis in it for partnership before distribution. Thus, basis in land is $130 to partner.

d

In liquidating distribution no gain or loss is recognized. Basis in land is equal to partner’s outside basis in partnership before distribution.

It makes basis in land at $250 to partner.

Please rate.

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?

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?

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?

Harvey Harrison has a basis of $30,000 for his partnership
interest. He receives as a current distribution the following as
his pro rata share of the partnership assets:
Basis
FMV
Cash
$5,000
$5,000
Accounts Receivables
0
12,000
Land held for investment
10,000
13,000
Total
$15,000
$30,000
(a.) What is Harvey's gain of loss on the distribution?
(b.) What is his basis for the accounts receivable?
(c.) What is his basis for the land?
(d.) What is his basis for his...

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...

1. Lucy and Benny formed Beard Partnership in 2006. Lucy’s
ownership (P&L %) is 65% and Benny’s ownership (P&L %) is
35%. Lucy contributed cash of $90,000 and equipment with FMV of
$325,000 and basis of $250,000. Benny contributed land with FMV of
$215,000 and adjusted basis of $160,000. The land was used by Benny
in his sole proprietorship prior to its contribution to the
partnership. Beard Partnership sells the land in 2019 for
$2,000,000.(6 Points) a. What is Lucy’s...

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?

Problem 11-24 (LO. 2) When Teri's outside basis in the TMF
Partnership is $80,000, the partnership distributes to her $30,000
cash, an account receivable (fair market value of $60,000, inside
basis to the partnership of $0), and a parcel of land (fair market
value of $60,000, inside basis to the partnership of $80,000). Teri
remains a partner in the partnership, and the distribution is
proportionate to the partners.
If an amount is zero, enter "0".
c. How much is Teri's...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 1 minute ago

asked 26 minutes ago

asked 27 minutes ago

asked 49 minutes ago

asked 49 minutes ago

asked 52 minutes ago

asked 52 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago