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.