86 connie owns a one third capital and profits

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South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
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Chapter 11 / Exercise 15
South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
Raabe/Young/Nellen/Hoffman
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86. Connie owns a one-third capital and profits interest in the calendar-year CDB Partnership. Her adjusted basis for her partnership interest was $120,000 when she received a proportionate nonliquidating distribution of the following assets: Partnership’s Basis in Asset Asset’s Fair Market Value Cash Land held for investment $140,000 30,000 $140,000 60,000 a. Calculate Connie’s recognized gain or loss on the distribution, if any. b. Calculate Connie’s basis in the land received. c. Calculate Connie’s basis for her partnership interest after the distribution.
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South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
The document you are viewing contains questions related to this textbook.
Chapter 11 / Exercise 15
South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
Raabe/Young/Nellen/Hoffman
Expert Verified
87. Randy owns a one-fourth capital and profits interest in the calendar-year RUSR Partnership. His adjusted basis for his partnership interest was $200,000 when he received a proportionate nonliquidating distribution of the following assets: Partnership’s Basis in Asset Asset’s Fair Market Value Cash Inventory $120,000 60,000 $120,000 90,000 a. Calculate Randy’s recognized gain or loss on the distribution, if any. Explain. b. Calculate Randy’s basis in the inventory received. c. Calculate Randy’s basis for his partnership interest after the distribution. 88. Karli owns a 25% capital and profits interest in the calendar-year KJDV Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $200,000. On that date, she receives a proportionate nonliquidating distribution of the following assets: Partnership’s Basis in Asset Asset’s Fair Market Value Cash $120,000 $120,000 Inventory 50,000 60,000 Land (held for investment) 70,000 100,000 a. Calculate Karli’s recognized gain or loss on the distribution, if any. b. Calculate Karli’s basis in the inventory received. c. Calculate Karli’s basis in land received. The land is a capital asset. d. Calculate Karli’s basis for her partnership interest after the distribution.
89. Melissa is a partner in a continuing partnership. At the end of the current year, the partnership makes a proportionate, nonliquidating distribution to Melissa of $50,000 cash, inventory (basis of $22,000, fair market value of $20,000), and land (basis of $30,000, fair market value of $60,000). Melissa’s basis in the partnership interest was $90,000 before the distribution. What is Melissa’s basis in the inventory, land, and partnership interest following the distribution? 90. In a proportionate nonliquidating distribution of his 30% interest in the MNO LLC, Neil received cash ($60,000), land (basis of $40,000 and value of $75,000), and unrealized receivables (basis of $0 and value of $22,000). In addition, Neil is relieved of his $40,000 share of the LLC’s liabilities. Neil’s basis in MNO (including his share of LLC liabilities) was $80,000 immediately prior to this distribution. a. How much gain or loss does Neil recognize on this distribution? b. What is Neil’s basis in the receivables and land he receives in the distribution? c. What is Neil’s basis in the LLC interest following the distribution? 91. In a proportionate liquidating distribution of his 40% interest in the RST LLC, Stuart received cash ($100,000), land (basis of $60,000 and value of $90,000), and unrealized receivables (basis of $0 and value of $40,000). In addition, Stuart is relieved of his $80,000 share of the LLC’s liabilities. Stuart’s basis in RST

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