A. Luther was admitted to the Evergreen Partnership as a 25% partner. He contributed land with a fair market value of $50,000 and $10,000 tax basis. The partnership has $100,000 in debt that is a recourse liability for all partners. What is Luther's tax basis in his partnership interest? B. Maria is a 25% partner in the MJJB Partnership. In 2021, the partnership reported $68,000 in ordinary business income, $2,000 in qualified dividends, $1,000 in tax exempt interest, and a $6,000 long term capital loss. Maria's tax basis in her partnership interest at the beginning of the year was $2,000, and she received a $10,000 distribution. What is Maria's tax basis at the end of the year?
A. Luther was admitted to the Evergreen Partnership as a 25% partner. He contributed land with a fair market value of $50,000 and $10,000 tax basis. The partnership has $100,000 in debt that is a recourse liability for all partners. What is Luther's tax basis in his partnership interest? B. Maria is a 25% partner in the MJJB Partnership. In 2021, the partnership reported $68,000 in ordinary business income, $2,000 in qualified dividends, $1,000 in tax exempt interest, and a $6,000 long term capital loss. Maria's tax basis in her partnership interest at the beginning of the year was $2,000, and she received a $10,000 distribution. What is Maria's tax basis at the end of the year?
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 31P
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A. Luther was admitted to the Evergreen
Partnership as a 25% partner. He contributed
land with a fair market value of $50,000 and
$10,000 tax basis. The partnership has $100,000
in debt that is a recourse liability for all partners.
What is Luther's tax basis in his partnership
interest?
B. Maria is a 25% partner in the MJJB
Partnership. In 2021, the partnership reported
$68,000 in ordinary business income, $2,000 in
qualified dividends, $1,000 in tax exempt
interest, and a $6,000 long term capital loss.
Maria's tax basis in her partnership interest at
the beginning of the year was $2,000, and she
received a $10,000 distribution. What is Maria's
tax basis at the end of the year?
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