Question
) Jennifers outside basis in the partnership is $50,000 and she receives cash of $20,000 from the partnership upon complete proportionate liquidation. She also receives
) Jennifers outside basis in the partnership is $50,000 and she receives cash of $20,000 from the partnership upon complete proportionate liquidation. She also receives some inventory, basis $10,000, (FMV of $15,000). Jennifer loved the receptionist desk used for the business and she manages to get the desk as well upon the liquidation. The partnerships adjusted basis in the desk is $200. a) How much capital loss, would Jennifer recognize on her tax return because of the liquidation? b) How much basis she will have in the inventory and the desk?
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