TBSRCO0436 Partnerships - Property Distribution

Brett is a 30% partner in the SLU partnership. Before receiving any distributions for the year his basis in his partnership interest is $20,000. For this problem assume that this is a proportionate distribution with regard to hot assets.

Part A. Brett receives a current distribution on December 2, 20XX, of $5,000 cash and inventory which has a fair market value of $50,000 and an adjusted basis of $12,000.

What is the gain or loss to Brett and to the partnership? What basis does Brett have in his partnership interest? What basis does Brett have in the inventory that was distributed? Assume that this is a proportionate distribution.

NOTE : enter "0" answer as appropriate. Enter a positive change in basis as a positive, whole number and a negative change as a negative, whole number.

Basis in interest
Change in basis for distribution
Basis after distribution
Gain or loss to Brett
Gain or loss to SLU
Basis in inventory to Brett

Part B. Assume the same facts as in Part A except that the inventory has a basis to the partnership of $30,000. What is the gain or loss to Brett? What basis does Brett have in his partnership interest? What basis does Brett have in the inventory that was distributed?

NOTE : enter "0" answer as appropriate

Basis in interest
Change in basis for distribution
Basis after distribution
Gain or loss to Brett
Basis in inventory to Brett