Question

The WXYZ partnership has the two assets shown in table before its liquidating distribution to partner W. If partner W with a $3,000 basis in her 25% interest receives $10,000 of capital assets, what basis will W have in the capital assets as a result of the liquidation?

Assets Basis Value

Accounts Receivable $0 $20,000

capital assets 12,000 20,000

Total $12,000 $40,000

Answer #1

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...

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?

The BAM Partnership distributed the following assets to partner
Barbie in a proportionate nonliquidating distribution: $10,000
cash, land parcel A (basis of $5,000, fair market value of $30,000)
and land parcel B (basis of $10,000, fair market value of $30,000).
Barbie's basis in her partnership interest was $40,000 immediately
before the distribution. Barbie will allocate a basis of $10,000
and $20,000, respectively, to the two land parcels, and her basis
in her partnership interest will be reduced to $0.
True...

Partner A received the following in a non-liquidating
distribution:
Basis FMV
Cash
$20,000 $20,000
Inventory Item
1 $15,000 $18,000
Inventory Item
2 $12,000 $4,000
Capital Asset
1 $15,000
$8,000
Capital Asset 2 $10,000 $20,000
$72,000 $70,000
Assume A’s basis in the partnership before the distribution was
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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...

Liquidating
Partnerships—Deficiency
Prior to liquidating
their partnership, Underwood and Morrison had capital accounts of
$17,000 and $71,000, respectively. The partnership assets were sold
for $36,000. The partnership had no liabilities. Underwood and
Morrison share income and losses equally.
Required:
a.
Determine the amount of Underwood's deficiency.
$
b.
Determine the amount distributed to Morrison, assuming Underwood is
unable to satisfy the deficiency.
$
Liquidating
Partnerships
Prior to liquidating
their partnership, Perkins and Montgomery had capital accounts of
$34,000 and $52,000,...

6) The Hylands Hotels are liquidating their
partnership. Before selling the assets and paying liabilities, the
capital balances for the partners are: Martha $45,000; Nathan
$36,000 and Orin $26,000. The profit and loss sharing ratio has
been 2:2:1 for Martha, Nathan and Orin respectively. The
partnership has cash $68,000, $75,000 noncash assets and
$36,000Accounts payable.
6a. Assume the partnership sells the non-cash
assets and received $84,000 in cash.
6b. Assume the partnership sells the noncash
assets and received $35,000.
Instructions...

The RST Partnership makes a pro rata distribution of its assets
to R in complete liquidation of R's partnership interest. The
distribution consist of $20,000 in cash and capital assets with a
basis to the partnership of $15,000 and a faor ,arlet va;ie pf
$30,000. At the time of the distribution, R's partnership basis is
$40,000, which is what she paid for the interest one year earlier.
If the partnership has no Section 754 election in effect what is
R's...

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...

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....

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