Parker a 25% partner in Delta Partnership, has a basis of $25,000 in his partnership interest....

Question

Question

Parker a 25% partner in Delta Partnership, has a basis of $25,000 in his partnership interest....

Parker a 25% partner in Delta Partnership, has a basis of $25,000 in his partnership interest. Parker receives a cash distribution of $24,000 at year-end. What is Parker's recognized gain or loss?

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Partnership Interest	=	$ 25,000
Cash distribution	=	$ 24,000
Remaining basis	=	$ 1,000

Gain or loss	=	$ 0

Therefore, yet there is no capital gain or loss

If it is helpful, please rate the answer and if any doubt arises let me know

Add a comment

Answer 2

Similar Homework Help Questions

Partner A has a basis of $25,000 in a partnership interest at a time when the...

Partner A has a basis of $25,000 in a partnership interest at a time when the partnership distributes the following items to A in the form of a non-liquidating distribution: $10,000 in cash, $12,000 in accounts receivable in which the partnership has a basis of $6,000, inventory worth $26,000 in which the partnership has a basis of $14,000, and a capital asset worth $10,000 in which the partnership has a basis of $5,000. There is no unrealized depreciation with respect...
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...
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%...

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...
3. (55 points) The adjusted basis of Peter Palmer's partnership interest is $50,000. In complete liquidation...

3. (55 points) The adjusted basis of Peter Palmer's partnership interest is $50,000. In complete liquidation of his interest in the partnership, Peter receives $15,000 in cash, inventory items having a basis to the partnership of $20,000 and a fair market value of $22,000, and two parcels of land.. Parcel I has an adjusted basis to the partnership of $18,000 and a fair market value of $15,000 and Parcel II has an adjusted basis to the partnership of $12,000 and...
Rufus is a one-quarter partner in the Adventure Partnership. On January 1 of the current year, Ad...

Rufus is a one-quarter partner in the Adventure Partnership. On January 1 of the current year, Adventure distributes $13,000 cash to Rufus in complete liquidation of his interest. Adventure has only capital assets and no liabilities at the date of the distribution. Rufus’s basis in his partnership interest is $9000. What is the amount Rufus' recognized gain or loss?

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...
Ten years ago, Dudley contributed land to the Prosperity LLC. His basis in the land was...

Ten years ago, Dudley contributed land to the Prosperity LLC. His basis in the land was $100,000. The fair market value at the contribution date was $115,000. This year, when the property's value was $200,000, the LLC distributed that property to partner Nicki. At that time, Dudley's basis in his LLC interest was $50,000 and Nicki's basis was $60,000. Assume that the partnership continues in existence and has no hot assets. What gain or loss is recognized as a result...
Chelsea owns a 25% capital and profits interest in the calendar-year CJDV Partnership. adjusted basis for...

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...

Larry’s tax basis in his partnership interest at the beginning of the year was $25,000. If...

Larry’s tax basis in his partnership interest at the beginning of the year was $25,000. If his share of the partnership debt increased by $18,500 during the year and his share of partnership income for the year is $12,000, what is his tax basis in his partnership interest at the end of the year?

Parker a 25% partner in Delta Partnership, has a basis of $25,000 in his partnership interest....

Homework Answers

Add Answer to:
Parker a 25% partner in Delta Partnership, has a basis of $25,000 in his partnership interest....

Post as a guest

Earn Coins

Partner A has a basis of $25,000 in a partnership interest at a time when the...

Parker’s basis in his PQ Partnership interest is $180,000. Parker receives a pro rata liquidating distribution...

Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a proportionate...

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

3. (55 points) The adjusted basis of Peter Palmer's partnership interest is $50,000. In complete liquidation...

Rufus is a one-quarter partner in the Adventure Partnership. On January 1 of the current year, Ad...

Partner Z of the XYZ partnership receives a liquidating distribution of the following: Basis FMV Cash...

Ten years ago, Dudley contributed land to the Prosperity LLC. His basis in the land was...

Chelsea owns a 25% capital and profits interest in the calendar-year CJDV Partnership. adjusted basis for...

Larry’s tax basis in his partnership interest at the beginning of the year was $25,000. If...

Parker a 25% partner in Delta Partnership, has a basis of $25,000 in his partnership interest....

Homework Answers

Add Answer to: Parker a 25% partner in Delta Partnership, has a basis of $25,000 in his partnership interest....

Post as a guest

Earn Coins

Add Answer to:
Parker a 25% partner in Delta Partnership, has a basis of $25,000 in his partnership interest....