Tyson is a 25% partner in the KT Partnership. On January 1, KT
makes a proportionate liquidating distribution of $20,000 cash and
land with a $16,000 fair value (inside basis $8,000) to Tyson. KT
has no liabilities at the date of the distribution. Tyson's basis
in his KT partnership interest is $20,000. What is Tyson's capital
gain and his basis in the distributed land?
Tyson's basis in the distributed land is $0.
He first allocates his outside basis to the distributed assets in an amount equal to KT's basis ($20,000 cash and $8,000 land). This results in a required decrease of $0. He reduces the basis in the land by the required decrease, which results in a basis of $0 to the land.
Tyson is a 25% partner in the KT Partnership. On January 1, KT 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%...
Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a proportionate liquidating distribution of $20,000 cash and inventory with a $15,000 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? A) $0. B) $14,000 ordinary income. C) $4,000 capital loss. D) $4,000 capital gain....
Randolph is a 30% partner in the RD Partnership, On January 1/RD distributes $10,000 cash, inventory with a fair value of $20,000 (inside basis of $15,000), and a parcel of land with a fair value of $10,000 (inside basis of $5,000) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD partnership interest his is $37,000. What is Randolph's basis in the distributed inventory and land? Randolph...
Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $18,000 cash and inventory with a fair value of $42,400 (inside basis of $21,200) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $41,650. What is the amount and character of Randolph's gain or loss on the distribution? Multiple Choice $0 gain or loss. $18,750 capital gain. $18,750...
In a proportionate liquidating distribution in which the partnership is liquidated, Bill received cash of $120,000, inventory (basis of $6,000, fair market value of $8,000), and a capital asset (basis and fair market value of $16,000). Immediately before the distribution, Bill’s basis in the partnership interest was $90,000. a. How much gain or loss will Bill recognize on the distribution? b. What is Bill’s basis in the inventory and the capital asset? CLUES: a. Bill will recognize a gain to...
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...
Problem 11-35 (LO. 3) Jamie's basis in her partnership interest is $52,000. In a proportionate distribution in liquidation of the partnership, Jamie receives $2,000 cash and two parcels of land with bases of $10,000 and $18,000, respectively, each to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $20,000 each. If there is no gain or loss or if an amount is zero, enter"0". a. How much gain or loss,...
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...
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?