Question

Rebecca has an $80,000 basis in her partnership interest when she receives liquidating distributions from the partnership. She receives cash of $44,000 and equipment with a $32,000 basis to the partnership. What are the tax consequences of the liquidating distributions to Rebecca?

Answer #1

**Solution:**

Given data,

Rebecca has an $80,000 basis in her partnership interest when she receives liquidating distributions from the partnership. She receives cash of $44,000 and equipment with a $32,000 basis to the partnership.

From the given data we need to find the tax consequences of the liquidating distributions to Rebecca

Aggregate sum got from association firm is taxable in the hands of partner singular expense form.

**So, $76,000 is taxable in
hands of Rebecca.**

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...

T. Palms has a basis of $20,000 for her one-third
interest in a partnership. The partnership has no liabilities, cash
of $22,000, and property with a partnership basis of $38,000 and
fair market value of $44,000. For her one-third interest, Palms
receives the cash of $22,000. If the partnership elects Sec. 754
optional basis adjustment, what is the basis of the retained
partnership property?
A.
$36,000
B.
$40,000
C.
$38,000
D.
$39,000

David’s basis in the Jimsoo Partnership is $55,000. In a
proportionate liquidating distribution, David receives cash of
$7,400 and two capital assets: (1) land 1 with a fair market value
of $20,800 and a basis to Jimsoo of $16,600, and (2) land 2 with a
fair market value of $10,300 and a basis to Jimsoo of $16,600.
Jimsoo has no liabilities. c1. If the two parcels of land had been
inventory to Jimsoo, what are the tax consequences to David...

At the beginning of the year, Elsie’s basis in the E&G
Partnership interest is $80,000. She receives a proportionate
current (nonliquidating) distribution from the partnership
consisting of $20,000 of cash, unrealized accounts receivable
(basis of $0, fair market value $40,000), and land (basis of
$20,000, fair market value of $50,000). After the distribution,
Elsie’s bases in the accounts receivable, land, and partnership
interest are:
a. $0; $30,000; and $50,000.
b. $0; $50,000; and $30,000.
c. $40,000; $30,000; and $10,000.
d....

As of the end of the current tax
year, Valerie Fleming’s tax basis in her partnership interest was
$45,000. At that time she received a $60,000
non-liquidating cash distribution. Assume that all other
partners also received proportionate cash distributions, so that
the provisions of §751(b) do not apply to the distribution.
Immediately following the distribution, the partnership had the
following assets:
Basis
FMV
Cash
$ 10,000 $
10,000
Accounts
Receivable
0
45,000
Depreciable
Equipment
50,000
80,000
Land (§1231
Asset) ...

Cindy sold her interest in a partnership for $28,000 cash when her
outside basis was $5,000. She was relieved of her $25,000 share of
partnership liabilities. What is Cindy’s realized value from the
sale of her partnership interest?

1. In complete liquidation of her interest in
the Buyers Partnership, Sarah received a cash distribution of
$40,000. Her basis in the partnership interest prior to receipt of
the liquidating distribution was $48,000.
a). How much gain or loss must Sarah recognize on
receipt of the liquidating distribution? b).
Assume that Sarah received cash of only $25,000, and property worth
$15,000 in complete liquidation of her interest in
the partnership. How much gain or loss would she recognize? What
would...

Paula's basis in her partnership interest is $60,000. in
liquidation of her interest, the partnership make a proportionate
distribution to paula of $20,000 of cash, and inventory (basis of
$5,000 and value of $7,000). (Assume the partnership also
liquidates.)
a. How much gain or loss, if any, will Paula recognize on the
distribution?
b. What basis will Paula take in the inventory?
c. What are the tax consequences to the partnership?
d. Can you recommend an alternative distribution? Explain.
e....

Similar to a C-Corporation, a partnership can make liquidating
and non liquidating distributions to its owners.
1-What are the effects to the partner and the partnership of a
non liquidating distribution of cash? How would your answer change
(or not change) if it were a non liquidating distribution of cash
from a C-Corporation to its shareholders?
2-What are the effects to the partner and partnership of a
liquidating distribution of land if the land had a FMV at
distribution of...

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 7 minutes ago

asked 21 minutes ago

asked 21 minutes ago

asked 24 minutes ago

asked 32 minutes ago

asked 32 minutes ago

asked 54 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago