Question
For each question on, you should assume that: * unless expressly stated to the contrary, all events occurred in the current taxable year; * all
For each question on, you should assume that:
* unless expressly stated to the contrary, all events occurred in the current taxable year;
* all persons are United States citizens;
* there is no tax avoidance purpose for any transaction, and that with respect to any mortgage on any property, there was a bona fide business purpose for incurring or assuming the debt;
* unless expressly stated to the contrary, the partnership has no hot assets, has no debts or other liabilities, and does not have a Section 754 election in effect;
* each partnership is a general partnership;
* there are no special allocation provisions contained in any partnership agreement; and
* unless expressly stated to the contrary, or the context of the questions requires a conclusion that the distribution was not pro rata - such as the liquidation of the interest of just one partner, all partnership distributions were pro rata.
13. Ellen is a 25 percent partner in EFGH Partners, a general partnership. Ellens adjusted basis in her partnership interest is $18,000. During the current taxable year, Ellen received a non-liquidating distribution of land from EFGH Partners that had an adjusted basis to the partnership of $23,000 and a fair market value of $45,000 on the date of distribution. What is Ellens basis in the land received in the non-liquidating distribution?
a. 0
b. $18,000
c. $23,000
d. $45,000
14. Gary is a one-third partner in GNG Partners. a general partnership. Garys adjusted basis in his partnership interest is $25,000. Gary received a distribution of real estate in a non-liquidating distribution from the partnership. The real estate had an adjusted basis to the partnership of $20,000 and a fair market value of $50,000 on the date of distribution. What is Garys basis in the real property received in the non-liquidating distribution?
a. 0
b. $20,000
c. $25,000
d. $50,000
15. On January 1 of the current taxable year, Sam and Barbara form an equal partnership. Sam makes a cash contribution of $60,000 and a contribution of property with an adjusted basis to him of $160,000 and a fair market value of $140,000 in exchange for his interest in the partnership. Barbara contributes property with an adjusted basis to her of $120,000 and a fair market value of $200,000in exchange for her partnership interest. Which of the following statements is accurate regarding the income tax consequences of this transaction?
a. Sams adjusted basis in his partnership interest is $200,000.
b. The partnerships adjusted basis in the property contributed by Sam is $140,000.
c. Barbara recognized a gain of $80,000 with respect to her contribution of property.
d. Barbaras adjusted basis in her partnership interest is $120,000.
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