Nonliquidation_Distributions

# Nonliquidation_Distributions - non-proportionate...

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Topic: Nonliquidating distributions Part 1. Partner (P) has a basis in his partnership interest of \$20,000. Determine the tax consequences (gain, basis, etc) for each of the following independent distributions. (a) He receives a proportionate non-liquidating distribution of \$25,000 in cash. (b) He receives a proportionate non-liquidating distribution of land with a fair value of \$25,000 and a basis to the partnership of \$15,000. (c) He receives a proportionate non-liquidating distribution of land with a fair value of \$25,000 and a basis to the partnership of \$22,000. Part 2 . Partner A has a basis in his partnership interest of \$50,000. Two years ago Partner A contributed property (land) with a basis of \$23,000 and a fair value of \$35,000 to the partnership. Determine the tax consequences (gain, basis, etc) for each of the following independent
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Unformatted text preview: non-proportionate liquidating distributions. (a) The land contributed by Partner A is distributed to Partner B when its fair value is \$40,000. B's basis in his partnership interest is \$45,000 before the distribution. (b) Partner A receives a current distribution of a DIFFERENT land parcel with a fair value of \$65,000 and a basis to the partnership of \$34,000. (c) Same facts as (a) except the land was not contributed by A, it was purchased by the partnership two years ago for \$35,000 with cash contributed by A. Part 3. P’s basis in his partnership interest is \$25,000. He receives the following assets in a non-liquidating distribution: B a s i s FMV Cash \$10,000 \$10,000 Unreal A/R -0- 15,000 Land 1 12,000 20,000 Land 2 30,000 24,000 How much gain does P recognize and what basis does he take in the assets?...
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