Kevin and Mary are 50/50 partners in ABC partnership with each having an outside basis in their partnership interest of $160,000. The partnership distributes cash of $80,000 to Kevin and Inventory with a basis of $40,000 and a FMV of $80,000 to Mary. Do Kevin or Mary have any gain or loss on the distributions? What basis does each take in the assets received?
In the above question Kevin and Marry both have equal interest in ABC which means both the party have equal rights to get share after distribution.
In Data, Kevin receives $ 80,000 in the form of cash as part of distribution while Marry receives Inventory of $40,000 which has FMV is $80,000.
In this situation Both Kevin And Marry get equal distribution Because Marry is also getting inventory which has FMV $80,000 which is equal to distribution of Kevin hence no one has gain or loss..
In this question outside basis each take receives assests..
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