Question
Consider the following independent situations: a. Kim receives a non-liquidating distribution of $20,000 cash from her partnership. Her A/B in her partnership interest is $3,000.
Consider the following independent situations:
a. Kim receives a non-liquidating distribution of $20,000 cash from her partnership. Her A/B in her partnership interest is $3,000. Is the distribution taxable? What is her A/B in her partnership interest after the distribution?
b. Carol receives a non-liquidating distribution of $40,000 cash and land with an A/B of $30,000 and a FMV of $50,000. Her basis in her partnership interest is $80,000. Is the distribution taxable? What is her A/B in the land? What is her A/B in the partnership after the distribution?
c. Chloe receives a non-liquidating distribution of $50,000 cash and inventory with an A/B of $30,000 and a FMV of $50,000. Her A/B in the partnership is $60,000. Is the distribution taxable? What is her A/B in the inventory? What is her A/B in the partnership after the distribution?
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