Question 4 Advanced Federal Income Tax

Three years ago, Vito joined the VL Partnership by contributing land with a $15,000 basis and a $24,000 FMV. On January 15 of the current year, Vito has a basis in his partnership interest of $10,000, and none of his precontribution gain has been recognized. On January 15, Vito receives a current distribution of a property other than the contributed land with a $14,000 basis and a $30,000 FMV. Read the requirements. Requirement a. Does Vito recognize any gain or loss on the distribution? Vito does not recognize any gain or loss on the distribution Requirement b. What is Vito's basis in his partnership interest after the distribution? Vito's basis in partnership interest before the distribution Plus: Sec. 737 gain recognized on the distribution Minus: Basis of property distributed Basis in partnership interest after the distribution Requirement c. What is the partnership's basis in the land Vito contributed after Vito receives this distribution? VL Partnership's basis in the land Vito contributed after the distribution is Three years ago, Vito joined the VL Partnership by contributing land with a $15,000 basis and a $24,000 FMV. On January 15 of the current year, Vito has a basis in his partnership interest of $10,000, and none of his precontribution gain has been recognized. On January 15, Vito receives a current distribution of a property other than the contributed land with a $14,000 basis and a $30,000 FMV. Read the requirements. Requirement a. Does Vito recognize any gain or loss on the distribution? Vito does not recognize any gain or loss on the distribution Requirement b. What is Vito's basis in his partnership interest after the distribution? Vito's basis in partnership interest before the distribution Plus: Sec. 737 gain recognized on the distribution Minus: Basis of property distributed Basis in partnership interest after the distribution Requirement c. What is the partnership's basis in the land Vito contributed after Vito receives this distribution? VL Partnership's basis in the land Vito contributed after the distribution is