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Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $33,000 at the end of
Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $33,000 at the end of the current year, prior to any distribution. On December 31 they each receive an operating distribution. Coy receives $13,000 cash. Matt receives $3,850 cash and a parcel of land with a $9,150 fair market value and a $5,000 basis to the partnership. Matcoy has no debt or hot assets.
d. What is Matts basis in the distributed property?
Basis in Cash?
Basis in Land?
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