Please help me with a. 1,2,3, and 4 and b. See Concept Summary 11.1 below for reference.
27. LO.2,9 Consider each of the following independent situations, and answer the following questions, a. For each fact pattern, indicate: . Whether the partner recognizes gain or loss. . Whether the partnership recognizes gain or loss. The partner's adjusted basis for the property distributed The partner's outside basis in the partnership after the distribution In each case, assume that the partnership owns no hot assets. Show your calculations in Microsoft Excel using a template similar to the format shown in Concept Summary 11.1. You will use "sum." "min," and "max" formulas. (1) Kim receives $20,000 cash in partial liquidation of her interest in the partnership. Kim's outside basis for her partnership interest immediately before the distribution is $3,000. (2) Kourtni receives $40,000 cash and land with an inside basis to the part- nership of $30,000 (value of $50,000) in partial liquidation of her interest. Kourtni's outside basis for her partnership interest immediately before the distribution is $80,000. (3) Assume the same facts as in part (2), except that Kourtni's outside basis for her partnership interest immediately before the distribution is $60,000. (4) Klois receives $50,000 cash and inventory with a basis of $30,000 and a fair market value of $50,000 in partial liquidation of her partnership inter- est. Her basis was $90,000 before the distribution. All partners received proportionate distributions. b. For fact patterns (1) to (4) in part (a) above, are additional planning opportuni- ties available to the partnership to maximize its inside basis in its assets? If so, by how much can the basis be increased? What is the effect of any basis increase to the distributee partner or the other partners? Concept Summary 11.1 Proportionate Current Distributions (General Rules) Gains and Losses Generally, neither the distributee partner nor the partnership recognizes any gain or loss on a proportionate current distribution of cash or property. Exception: Gain is recognized if cash (and deemed cash) distributions exceed the distributee partner's basis. Exception: Where the partner's outside basis is less than the partnership's inside (property) basis, partner's outside basis is assigned to distributed property (substituted basis). Basis in Partnership Interest and Property Received The partner's basis in the partnership interest is reduced by the partner's basis in distributed property received. General rule: Partner's basis in distributed property equals partnership's basis before distribution (carryover basis). Other Issues If the partner recognizes gain on a proportionate current distribution, the gain is a capital gain. Neither the partner nor the partnership recognizes loss on a proportionate current distribution of cash or property. Proportionate Current Distribution Inputs and Calculations Input the following information and complete the Calculations chart to determine the partner's (1) gain or loss and (2) basis in distrib- uted property on a proportionate current distribution. Inputs Line 1 below Line 2 below Line 5 below Line 8 below Partner's outside basis before distribution Step 1. Cash and deemed cash distributed Step 2. Partnership's basis in distributed hot assets Step 3. Partnership's basis in other distributed prop Calculations 1. Partner's outside basis (input above). 2. Step 1. Cash and deemed cash distributed (input above). 3. Gain recognized by partner (excess of line 2 over line 1, if any). 4. Partner's remaining outside basis (line 1 - line 2). If less than $0, enter $0. 5. Step 2. Partnership's basis in distributed hot assets (input above). 6. Partner's basis in distributed hot assets (lesser of line 4 or line 5). 7. Partner's remaining outside basis (line 4 - line 6). Cannot be
