In 2020 Terry contributes nondepreciable property with an adjusted basis of $66,400 and a fair market value of $99,600 to the Richmond Partnership in exchange for a one-half interest in profits and capital. In the next tax year, when the property's fair market value is $106,240, the partnership distributes the property to Rick, the other one-half partner. Rick's basis in the partnership interest was $106,240 immediately before the distribution.

How much of a gain must Terry recognize in the year the property is distributed to Rick?

Answer: ...........

In 2020 Terry contributes nondepreciable property with an adjusted basis of $66,400 and a fair market value of $99.000 to the Rochmond Partnership in exchange for one-half interest in profits and capital. In the next tax year, when the property's fair market value is $106,240, the partnership distributes the property to Rick, the other one-half partner. Rick's basis in the partnership Interest was $106,240 immediately before the distribution. How much of pain munt Terry recognize in the year the property is distributed to Rick? Answer: Previous Next >