Question
Basis of Distributed Property - Current Distribution. R receives a current distribution from the RST Partnership consisting of the following: Cash: Inside Basis: $10,000; Outside
Basis of Distributed Property - Current Distribution.
R receives a current distribution from the RST Partnership consisting of the following:
Cash: Inside Basis: $10,000; Outside Basis: $10,000
Accounts receivable: Inside Basis: $0; Outside Basis: $7,500
Inventory: Inside Basis: $4,000; Outside Basis: $5,000
Capital asset 1: Inside Basis: $5,000; Outside Basis: $4,000
Capital asset 2: Inside Basis: $8,000; Outside Basis: $6,000
Immediately prior to the distribution, R's outside basis in her partnership interest was $22,000. What are R's bases in the distributed assets, and what is her basis in the partnership interest after the distribution?
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