Valerie on receipt of the excess distribution since

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Valerie on receipt of the excess distribution. Since §751(b) does not apply, her gain will be capital in nature.
ii. To which class(es) of assets will the adjustment be allocated?
iii. How will the adjustment be allocated among the partnership’s remaining assets?
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Practical Guide to Partnerships and LLCs—Instructor’s Guide Solutions 13 8. Samantha is a forty percent partner in Stevens LLC. Her tax basis in her partnership interest is $57,000. She received a non-liquidating distribution of real property (§1231 property to the partnership) with a fair market value of $100,000 and a tax basis of $65,000. Following the distribution, the partnership had remaining assets as follows: Basis FMV Cash $ 10,000 $ 10,000 Real Estate (§1231 Property): Tract 1 54,000 70,000 Tract 2 65,000 45,000 Tract 3 71,000 95,000 $200,000 $220,000 i. Assume the LLC has a §754 election in effect. What will be the amount of the basis adjustment under §734(b)?
ii. How will the basis adjustment be allocated among the partnership’s remaining properties?
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