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Cliff's basis in his Aero Partnership interest is $ 1 5 , 5 0 0 . Cliff receives a distribution of $ 2 5 ,
Cliff's basis in his Aero Partnership interest is $ Cliff receives a distribution of $ cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet:
Tax Basis FMV
Assets
Cash $ $
Investment
Land
Totals $ $
Liabilities and capital
CapitalChris $
CapitalCliff $
CapitalCooper $
Totals $
Required:
a What are the amount and character of Cliff's recognized gain or loss?
a Will the distribution have any effect on the partnership assets?
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