Doris owns a one-third capital and profits interest in the calendar-year DB Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $20,000. On that date, she receives an operating distribution of her share of partnership assets shown below: Cash Inventory Land Partnership's Basis in Asset 81,000 36,000 120,000 Asset's Fair Market Value $ 81.000 24,000 135,000 What is the amount and character of Doris's gain or loss on the distribution? What is her basis in the distributed assets?
Doris owns a one-third capital and profits interest in the calendar-year DB Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $20,000. On that date, she receives an operating distribution of her share of partnership assets shown below: Cash Inventory Land Partnership's Basis in Asset 81,000 36,000 120,000 Asset's Fair Market Value $ 81.000 24,000 135,000 What is the amount and character of Doris's gain or loss on the distribution? What is her basis in the distributed assets?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter6: Losses And Loss Limitations
Section: Chapter Questions
Problem 21P
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Transcribed Image Text:Doris owns a one-third capital and profits interest in the calendar-year DB Partnership. Her adjusted basis for
her partnership interest on July 1 of the current year is $20,000. On that date, she receives an operating
distribution of her share of partnership assets shown below:
Cash
Inventory
Land
Partnership's Basis in
Asset
$
81,000
36,000
120,000
Asset's Fair Market Value
$
81.000
24,000
135,000
What is the amount and character of Doris's gain or loss on the distribution? What is her basis in the distributed
assets?
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