Question 1: In 2022, Paul, a 50% partner is Alpha Partnership, has an outside basis of $270,000, Paul received a proport
Posted: Sun Jun 05, 2022 5:35 pm
Question 1: In 2022, Paul, a 50% partner is Alpha Partnership,
has an outside basis of $270,000, Paul received a proportionate
non-liquidating distribution as follows:
Adjusted basis Fair Market Value
Cash $125,000 $125,000
Inventory 30,000 45,000
Land 90,000 165,000
How would your answers change if the distribution was a
proportionate liquidating distribution?
• Does Paul recognize gain or loss from this distribution?
• What is Paul’s basis in:
• What is Paul’s outside basis in his interest in Alpha
Partnership following this distribution?
• Assume that in 2022, Paul sells the land for $200,000. How
much gain or loss (if any) must Paul recognize?
has an outside basis of $270,000, Paul received a proportionate
non-liquidating distribution as follows:
Adjusted basis Fair Market Value
Cash $125,000 $125,000
Inventory 30,000 45,000
Land 90,000 165,000
How would your answers change if the distribution was a
proportionate liquidating distribution?
• Does Paul recognize gain or loss from this distribution?
• What is Paul’s basis in:
• What is Paul’s outside basis in his interest in Alpha
Partnership following this distribution?
• Assume that in 2022, Paul sells the land for $200,000. How
much gain or loss (if any) must Paul recognize?