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Doris owns a one-third capital and profits interest in the calendar-year DB Partnership. Her adjusted basis for her partnership interest on July 1 of the
Doris owns a one-third capital and profits interest in the calendar-year DB Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $18,200. On that date, she receives an operating distribution of her share of partnership assets shown below:
Partnership's Basis in Asset | Asset's Fair Market Value
Cash $ 94,500 $ 94,500
Inventory $34,200 $24,900
Land $115,500 $139,500
What is the amount and character of Doris's gain or loss on the distribution? What is her basis in the distributed assets?
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