Suzy owns a 25% capital and profits interest in the calendar-year SJDV 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 current distribution of the following assets:

a.Calculate Suzy's recognized gain or loss on the distribution, if any.
b.Calculate Suzy's basis in the inventory received.
c.Calculate Suzy's basis in land received. The land is a capital asset.
d.Calculate Suzy's basis for her partnership interest after the distribution.

Question

Suzy owns a 25% capital and profits interest in the calendar-year SJDV 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 current distribution of the following assets:
  
a.Calculate Suzy's recognized gain or loss on the distribution, if any.
b.Calculate Suzy's basis in the inventory received.
c.Calculate Suzy's basis in land received. The land is a capital asset.
d.Calculate Suzy's basis for her partnership interest after the distribution.

Quizplus · Accepted Answer

The Answer of Suzy owns a 25% capital and profits interest in the calendar-year SJDV 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 current distribution of the following assets:
  
a.Calculate Suzy's recognized gain or loss on the distribution, if any.
b.Calculate Suzy's basis in the inventory received.
c.Calculate Suzy's basis in land received. The land is a capital asset.
d.Calculate Suzy's basis for her partnership interest after the distribution.

Suzy Owns a 25% Capital and Profits Interest in the Calendar-Year