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Clementine is a 12% partner of West Partnership. On May 12, 2018, Clementine receives a non-liquidating distribution of prope

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Answer #1

Answer :

Given that :

FVM property = $ 20,000

West partnership = $ 24,000

Tax capital = $ 14,000

Property liabilities = 10,000

Clementines basis property received:

= 12%(20,000) + 24,000 + 14,000 - 10000

= $ 14,000

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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...
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