Greg owns a 50 percent share of the Rich and Greg RG law firm partnership. Both partners and the entity are on the calendar year for tax purposes. Gregs basis in the partnership interest at the beginning of the year is $300,000. The partnerships relevant data for year 1 includes the following:

• Partnership ordinary income $500,000
• Partnership municipal bond interest $100,000
• Greg capital; account withdrawals $250,000
• December 31st (end of year) cash distribution to the partners $150,000
• December 31st (end of year) property distribution to Greg: fair-market value $30,000
• Basis $25,000
• Partnerships liabilities January 1st (beginning of year) $20,000
• Partnerships liabilities December 31st (end of year) $100,000

Tasks:

1. What is Gregs basis in the partnership before the December 31st distributions?
2. What is Gregs basis in the property distributed?