Helen's basis in Haywood partnership is $270,000. Haywood distributes all the land to Helen in complete liquidation
Question:
Helen's basis in Haywood partnership is $270,000. Haywood distributes all the land to Helen in complete liquidation of her partnership interest. The partnership reports the following balance sheet just before the distribution:
Assets:________.......__Tax Basis__________FMV
Cash.............................$ 220,000..........$ 220,000
Stock(investment)......480,000............220,000
Land..............................110,000............220,000
Totals.........................$ 810,000...........$ 660,000
Liabilities and capital:
Capital- Charles.......$ 270,000
- Esther........................270,000
- Helen.........................270,000
Totals.........................$ 810,000
a. What is the amount and character of Helen's recognized gain or loss? What is the effect on the partnership assets?
b. If Haywood has a §754 election in place, what is the amount of the special basis adjustment?
Step by Step Answer:
a Helen does not recognize any gain or losson the distribut...View the full answer
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
