In the KD Partnership, Scott received adistribution consisting of $38,000 cash and property valued at...
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Accounting
In the KD Partnership, Scott received adistribution consisting of $38,000 cash and property valued at $62,000. The partnerships tax basis in the property, which was not inventory or unrealized receivable,was $22,000. Scotts basis in his partnership interest prior to receipt of the liquidating distribution was $35,000. The distribution was not a disproportionate distribution.
a) Will Scott be required to recognize any gain or loss for tax purposes upon receipt of the liquidating distribution?
b) What will be his tax basis in the property received from the partnership?
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