True or False: If a partner receives a non-liquidating cash distribution, the partner will recognize a...
True or False: If a partner receives a non-liquidating cash distribution, the partner will recognize a loss if the cash distributed is less than the partner's outside basis at the time of the distribution.
Homework Answers
Answer: This is false
Generally, such distribution should not be recognized as gain or loss if exceeding partner’s outside basis; but partners are eligible to recognize gain if such distribution exceeds the outside basis. Partners can’t recognize loss.
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True or False: If a partner receives a non-liquidating cash
distribution, the partner will recognize a...
Partner Z of the XYZ partnership receives a liquidating distribution of the following: Basis FMV Cash...
Partner Z of the XYZ partnership receives a liquidating distribution of the following: Basis FMV Cash $40,000 $40,000 Inventory $30,000 $45,000 Unrealized receiv. $50,000 $45,000 1. Z’s basis in her partnership interest was $95,000. What is her gain or loss and the bases of the assets distributed to her? 2. Assume Z’s basis in her partnership interest was $130,000. What is her gain or loss and the bases of the assets distributed to her?Answer 1. There is no gain or...
Clementine is a 12% partner of West Partnership. On May 12, 2018, Clementine receives a non-liquidating distribution of property with FMV of $20,000 (partnership's basis in the property is $18,00...
Clementine is a 12% partner of West Partnership. On May 12, 2018, Clementine receives a non-liquidating distribution of property with FMV of $20,000 (partnership's basis in the property is $18,000). Right before the distribution, Clementine's outside basis in West Partnership is $24,000, including her tax basis in capital of $14,000 and her share of partnership liabilities of $10,000. What is Clementine's basis in the property received? a $2,160 b $2,400 c $14,000 d $18,000 e $20,000
Clementine is a 12%...
David’s basis in the Jimsoo Partnership is $54,500. In a proportionate liquidating distribution, David receives cash...
David’s basis in the Jimsoo Partnership is $54,500. In a proportionate liquidating distribution, David receives cash of $7,300 and two capital assets: (1) Land A with a fair market value of $20,600 and a basis to Jimsoo of $16,450, and (2) Land B with a fair market value of $10,225 and a basis to Jimsoo of $16,450. Jimsoo has no liabilities. c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to David...
David's basis in the Jimsoo Partnership is $63,000. In a proportionate liquidating distribution, David receives cash...
David's basis in the Jimsoo Partnership is $63,000. In a proportionate liquidating distribution, David receives cash of $9.000 and two capital assets: (1) land 1 with a fair market value of $24,000 and a basis to Jimsoo of $19,000, and (2) land 2 with a fair market value of $11,500 and a basis to Jimsoo of $19,000. Jimsoo has no liabilities. b. What is David's basis in the distributed assets? (Do not round intermediate calculations. Round your answers to the...
David's basis in the Jimsoo Partnership is $63,000. In a proportionate liquidating distribution, David receives cash...
David's basis in the Jimsoo Partnership is $63,000. In a proportionate liquidating distribution, David receives cash of $9,000 and two capital assets: (1) land 1 with a fair market value of $24,000 and a basis to Jimsoo of $19,000, and (2) land 2 with a fair market value of $11,500 and a basis to Jimsoo of $19,000. Jimsoo has no liabilities. b. What is David's basis in the distributed assets? (Do not round intermediate calculations. Round your answers to the...
Parker’s basis in his PQ Partnership interest is $180,000. Parker receives a pro rata liquidating distribution...
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...
please answer below t or f questions A partner receives a distribution of cash, inventory and...
please answer below t or f questions A partner receives a distribution of cash, inventory and a vehicle. His outside basis is first allocated to the inventory, then to the cash and then to the vehicle. Any partnership debt that is allocated to another partner is treated as deemed cash contribution. Bobby owns 60 percent of the stock of ABC Corporation. Unrelated individuals own the remaining 40 percent. For a stock redemption to be treated as an exchange under the...
26. Identify which of the following statements is true. A) A liquidating distribution of property other...
26. Identify which of the following statements is true. A) A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings) will permit the recognition of loss on the portion of the distribution that is made to a related person. B) A subsidiary corporation can recognize losses on distributions to either the parent corporation or minority shareholders in a Sec. 332 liquidation. C) Section 336 prevents recognition of a loss...
ACCT 540 Assignment 6 Using the number on the table below determine the tax treatment to...
ACCT 540 Assignment 6 Using the number on the table below determine the tax treatment to the partner who receives the distribution indicated, and then assuming the partnership has made a Section 754 election, determine the Section 734 adjustment, if any. If there is none write "None" or "N/A In EACH case the basis of the partner's interest is $50,000 before the distribution. The distribution consists of cash, a capital asset, and inventory as shown. If a column is blank...
Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a proportionate...
Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a proportionate liquidating distribution of $15,000 cash and inventory with a $20,000 fair value (inside basis $5,000) to Daniela. JRD has no liabilities at the date of the distribution. Daniela's basis in her JRD partnership interest is $21,000. What is the amount and character of Daniela's gain or loss from the distribution, and what is the basis of the inventory she receives?
Daniela is a 25%...
Clementine is a 12% partner of West Partnership. On May 12, 2018, Clementine receives a non-liquidating distribution of property with FMV of $20,000 (partnership's basis in the property is $18,000). Right before the distribution, Clementine's outside basis in West Partnership is $24,000, including her tax basis in capital of $14,000 and her share of partnership liabilities of $10,000. What is Clementine's basis in the property received? a $2,160 b $2,400 c $14,000 d $18,000 e $20,000
Clementine is a 12%...
David's basis in the Jimsoo Partnership is $63,000. In a proportionate liquidating distribution, David receives cash of $9.000 and two capital assets: (1) land 1 with a fair market value of $24,000 and a basis to Jimsoo of $19,000, and (2) land 2 with a fair market value of $11,500 and a basis to Jimsoo of $19,000. Jimsoo has no liabilities. b. What is David's basis in the distributed assets? (Do not round intermediate calculations. Round your answers to the...
David's basis in the Jimsoo Partnership is $63,000. In a proportionate liquidating distribution, David receives cash of $9,000 and two capital assets: (1) land 1 with a fair market value of $24,000 and a basis to Jimsoo of $19,000, and (2) land 2 with a fair market value of $11,500 and a basis to Jimsoo of $19,000. Jimsoo has no liabilities. b. What is David's basis in the distributed assets? (Do not round intermediate calculations. Round your answers to the...
26. Identify which of the following statements is true. A) A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings) will permit the recognition of loss on the portion of the distribution that is made to a related person. B) A subsidiary corporation can recognize losses on distributions to either the parent corporation or minority shareholders in a Sec. 332 liquidation. C) Section 336 prevents recognition of a loss...
ACCT 540 Assignment 6 Using the number on the table below determine the tax treatment to the partner who receives the distribution indicated, and then assuming the partnership has made a Section 754 election, determine the Section 734 adjustment, if any. If there is none write "None" or "N/A In EACH case the basis of the partner's interest is $50,000 before the distribution. The distribution consists of cash, a capital asset, and inventory as shown. If a column is blank...
Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a proportionate liquidating distribution of $15,000 cash and inventory with a $20,000 fair value (inside basis $5,000) to Daniela. JRD has no liabilities at the date of the distribution. Daniela's basis in her JRD partnership interest is $21,000. What is the amount and character of Daniela's gain or loss from the distribution, and what is the basis of the inventory she receives?
Daniela is a 25%...
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