Question

Heidi and Teresa are equal partners in the HT Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners each have a $50,000 basis in their partnership interests. On December 31, the partnership makes a pro-rata operating distribution to Heidi of $60,000 cash. What is the amount and character of Heidi's recognized gain or loss? What is Heidi's remaining basis in HT?

Answer 1

solution :
given that
Heidi and Teresa are equal partners in the HT Partnership.
The partners formed the partnership seven years ago by contributing cash.
Prior to any distributions, the partners each have a $50,000 basis in their partnership interests.
On December 31, the partnership makes a pro-rata operating distribution to Heidi of $60,000 cash.
heidi has neither profit nor loss since they are equal partners each would have contributed 50% of Debts Equally that is 25k each out of their basis. So reducing 25k out of 50K in heidis Basis remaining would be 25k basis for heidi in HT.