Erin’s interest in the EPG Partnership is liquidated when his basis in the interest is $30,000....
Erin’s interest in the EPG Partnership is liquidated when his basis in the interest is $30,000. He receives a liquidating distribution of $20,000 cash and inventory with a basis of $8,000 and an FMV of $30,000. Erin will recognize
A) no gain or loss.
B) $2,000 capital loss.
C) $2,000 ordinary loss.
D) $10,000 capital loss and $20,000 ordinary loss.
Homework Answers
Answer: 2000 capital loss
Basis interest of liquidating partnership 30000
Received liquidating distribution (20000)
Cash and inventory basis (8000)
Erin will recognize 2000 capital loss.
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Erin’s interest in the EPG Partnership is liquidated when his
basis in the interest is $30,000....
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