Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests: Partner Outside Basis Adam $ 12,000 Alyssa $ 12,000 On December 31 of the current year, the partnership makes a pro rata operating distribution of: Partner Distribution Adam Cash $ 16,000 Alyssa Cash $ 8,000 Property $ 8,000 (FMV) ($6,000 basis to partnership) (Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of Adam’s recognized gain or loss?
Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests: Partner Outside Basis Adam $ 12,000 Alyssa $ 12,000 On December 31 of the current year, the partnership makes a pro rata operating distribution of: Partner Distribution Adam Cash $ 16,000 Alyssa Cash $ 8,000 Property $ 8,000 (FMV) ($6,000 basis to partnership) (Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of Adam’s recognized gain or loss?
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 2BCRQ
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Adam and Alyssa are equal partners in the PartiPilo
| Partner | Outside Basis |
|---|---|
| Adam | $ 12,000 |
| Alyssa | $ 12,000 |
On December 31 of the current year, the partnership makes a pro rata operating distribution of:
| Partner | Distribution | |
|---|---|---|
| Adam | Cash $ 16,000 | |
| Alyssa | Cash $ 8,000 | |
| Property $ 8,000 | (FMV) ($6,000 basis to partnership) |
(Leave no answer blank. Enter zero if applicable.)
a. What are the amount and character of Adam’s recognized gain or loss?
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