Zach contributed land with a FMV of $25,000 and a basis of $14,000 to a partnership on

Question:

Zach contributed land with a FMV of $25,000 and a basis of $14,000 to a partnership on April 5, 2013. On June 6, 2019, the partnership distributed the land to Art, a partner in the same partnership. At distribution, the land had a FMV of $29,000.

a. What is the effect of the distribution to Zach, if any?

b. What is the effect of the distribution to Art?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...

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