Catherine's basis was $50,000 in the CAR Partnership just before she received a proportionate current (nonliquidating) distribution consisting of land held for investment with a basis to CAR of $40,000 (value of $60,000), and inventory with a basis of $40,000 (value of $40,000). After the distribution, Catherine's bases in the land and inventory are:
a.$25,000 (land); $25,000 (inventory).
b.$60,000 (land); $40,000 (inventory).
c.$10,000 (land); $40,000 (inventory).
d.$40,000 (land); $10,000 (inventory).
e.$40,000 (land); $40,000 (inventory).
Catherine's basis was $50,000 in the CAR Partnership just before she received a proportionate current (nonliquidating)...
Cindy owns a 25% capital and profits interest in the calendar-year Rhubarb Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $200,000. On that date, she receives a proportionate nonliquidating distribution of the following assets. Partnership's Basis in Asset Asset's Fair Market Value Cash $120,000 $120,000 Inventory 50,000 60,000 Land (held for investment) 70,000 100,000 Calculate Cindy's basis in the land received. Calculate Cindy's basis for her partnership interest after the distribution. Calculate...
Karli owns a 25% capital and profits interest in the calendar-year KJDV Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $200,000. On that date, she receives a proportionate current (nonliquidating) distribution of the following assets. PARTNERSHIP'S BASIS IN ASSET ASSET'S FAIR MARKET VALUE CASH $120,000 $120,000 INVENTORY $50,000 $60,000 LAND (HELD FOR INVESTMENT) $70,000 $100,000 a. Calculate Karli’s recognized gain or loss on the distribution, if any. b. Calculate Karli’s basis in...
Chelsea owns a 25% capital and profits interest in the calendar-year CJDV Partnership. adjusted basis for her partnership interest on July 1 of die current year is $170,000. On that date, she receives a proportionate nonliquidating distribution of the following assets: Asset's Fair Market Value Partllership s Basis in Asset Cash 90,000 $ 90,000 Inventory 1 10,000 140,000 Land (held for investment) 100,000 160,000 -Calculate Chelsea's recognized gain or loss on the distribution, if any. -Calculate Chelsea's basis in the...
At the beginning of the year, Elsie's basis in the E&G Partnership interest is $90,000. She receives a proportionate non liquidating distribution from the partnership consisting of $10,000 of cash, unrealized accounts receivable (basis of $0, fair market value $40,000), and land (basis of $30,000, fair market value of $45,000). After the distribution, Elsie's bases in the accounts receivable, land, and partnership interest are: 7. Basis in Accounts Receivable Basis in Land Basis in the Partnership
In a proportionate current (nonliquidating) distribution of his 30% interest in the MNO LLC, Neil received cash ($60,000), land (basis of $40,000 and value of $75,000), and unrealized receivables (basis of $0 and value of $22,000). In addition, Neil is relieved of his $40,000 share of the LLC’s liabilities. Neil’s basis in MNO (including his share of LLC liabilities) was $80,000 immediately prior to this distribution. a. How much gain or loss does Neil recognize on this distribution? b. What...
Problem 11-35 (LO. 3) Jamie's basis in her partnership interest is $52,000. In a proportionate distribution in liquidation of the partnership, Jamie receives $2,000 cash and two parcels of land with bases of $10,000 and $18,000, respectively, each to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $20,000 each. If there is no gain or loss or if an amount is zero, enter"0". a. How much gain or loss,...
interest is $50,000. His distribution includes cash of $5,000, inventory (FMV -$20,000; basis $10,000), and equipment (FMV $2,000; basis $1,000). Sam's marginal tax rate is 24% and his long-term capital gains tax rate is 15%. 2. Sam receives a proportionate nonliquidating distribution when the basis of his partnership a. How much gain or loss does Sam recognize? Gain /Loss) b. What is Sam's tax liability/benefit on the distribution? (Liability /Benefit) c. What is Sam's basis in the inventory? d. What...
) Jennifer’s outside basis in the partnership is $50,000 and she receives cash of $20,000 from the partnership upon complete proportionate liquidation. She also receives some inventory, basis $10,000, (FMV of $15,000). Jennifer loved the receptionist desk used for the business and she manages to get the desk as well upon the liquidation. The partnership’s adjusted basis in the desk is $200. a) How much capital loss, would Jennifer recognize on her tax return because of the liquidation? b) How...
Parker’s basis in his PQ Partnership interest is $180,000. Parker receives a pro rata liquidating distribution consisting of $20,000 cash, land with a basis of $80,000 and a fair market value of $100,000, and his proportionate share of inventory with a basis of $60,000 to PQ and a fair market value of $75,000. Assume that PQ also liquidates. How much gain or loss, if any, must Parker recognize on the distribution? What basis will Parker take in the inventory and...
In a proportionate liquidating distribution in which the partnership is liquidated, Bill received cash of $120,000, inventory (basis of $6,000, fair market value of $8,000), and a capital asset (basis and fair market value of $16,000). Immediately before the distribution, Bill’s basis in the partnership interest was $90,000. a. How much gain or loss will Bill recognize on the distribution? b. What is Bill’s basis in the inventory and the capital asset? CLUES: a. Bill will recognize a gain to...