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Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in...

Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $33,000 at the end of the current year, prior to any distribution. On December 31 they each receive an operating distribution. Coy receives $13,000 cash. Matt receives $3,850 cash and a parcel of land with a $9,150 fair market value and a $5,000 basis to the partnership. Matcoy has no debt or hot assets.

d. What is Matt’s basis in the distributed property?

Basis in Cash?

Basis in Land?

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Answer #1

Answer:-

The Matt basis in the distributed property of basis in the cash and the basis of land is because of Matt take carryover basis in the distributed property . The cash has a basis of equal to 3850 and the land has basis of equal to 5000(matcoy basis in the land).

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