Question
Partners Outside Basis Is Less Than Inside Basis of Distributed Assets Example 4: Distributions of money, inventory, and/or unrealized receivables Property Basis FMV Cash 256,000
Partners Outside Basis Is Less Than Inside Basis of Distributed Assets
Example 4: Distributions of money, inventory, and/or unrealized receivables
| Property | Basis | FMV |
| Cash | 256,000 | 256,000 |
| Inventory A | 50,000 | 128,000 |
| Inventory B | 25,000 | 17,000 |
Bobs basis in his partnership interest as of the liquidation is $334,000, including his $66,000 share of the partnerships liabilities.
What is Bobs recognized gain or loss on the distribution?
What is Bobs basis in the distributed assets following the liquidation?
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Authors: Vasant Raval
1st Edition
0367862751, 978-0367862756
