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Karli owns a 25% capital and profits interest in the calendar-year KJDV Partnership. Her adjusted basis...

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 the land received. The land is a capital asset. SHOW YOUR WORK

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Answer #1

kaile will not veconre ony an tHe distnibut.co Oe lay because the on 20)000 cash dahibubo doesnot eaaad he t2,00 Outrrde bas

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