Partnership CAT makes a liquidating proportionate distribution to T who has a one-half interest in the capital and profits of CAT. T's basis in her partnership interest is $80,000. She receives land with a basis of $90,000 and fair market value of $100,000. How much gain or loss does M recognize and what is her basis in the land after the distribution?
A. $ 0 $90,000
B. $ 0 $80,000
C. $10,000 $80,000
D. $20,000 $80,000
The way to approach this... View the full answer
- Gain will be recognized if the partner receive cash and inventory in excess of his interest in the partnership.
- May 03, 2018 at 1:16am