50.1K

Verified Solution

Link Copied!

For each of the following situations, determine the partners basis in the distributed (noncash) property.

1. Quentins adjusted basis in his Wagon Partnership interest is $63,000. During the year, Quentin received a nonliquidating distribution of $30,000 plus equipment with an adjusted basis of $20,000 to Wagon and a FMV of $25,000.
2. Duane had an adjusted basis in his Peach Partnership interest of $80,000 on July 13, 2020. On that date, Duane received a liquidating distribution of land with an AB to Peach of $25,000 and a FMV of $35,000 and equipment with an AB to Peach of $35,000 and a FMV of $50,000. Determine the basis of the equipment only.
3. Melissas adjusted basis in her Statesboro Partnership interest was $32,000 when she received a nonliquidating distribution of $13,000 cash and property with an AB to Statesboro of $25,000 and a FMV of $28,000.
4. Lucy has a $50,000 basis in the her Diamond partnership interest. She received a liquidating distribution of $10,000 cash and land with a FMV of $43,000 and a basis of $38,000.
5. Houlihans Partnership distributed land with a FMV of $900,000 and an adjusted basis to the partnership of $825,000 to Bruce in a nonliquidating distribution. Bruces basis in the partnership interest was $750,000.
6. Mary Anns adjusted basis in Coconut Associates was $300,000 immediately before she received a distribution in complete liquidation of Coconut. She received $125,000 in cash and and equipment with an AB to Coconut of $150,000 and a FMV of $200,000.

Answer & Explanation Solved by verified expert

See Answer