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Sarah is a 50% partner in DEF Partnership. Her outside basis in the partnership is $25,000. Sarah received a non-liquidating distribution of $11,000 cash, inventory
Sarah is a 50% partner in DEF Partnership. Her outside basis in the partnership is $25,000. Sarah received a non-liquidating distribution of $11,000 cash, inventory with a basis of $10,000 and a FMV of $12,000, and land with a basis of $5,000 and a FMV of $9,000. What is Sarahs basis in the inventory, her basis in the land, and her basis in the partnership after the distribution?
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