Question
Tom is a partner in TXY partnership. His adjusted basis in the partnership is $30,000. During the year, he receives the following distributions: AB FMV
Tom is a partner in TXY partnership. His adjusted basis in the partnership is $30,000. During the year, he receives the following distributions:
AB FMV
Cash $25,000 $25,000
Property $25,000 $50,000.
These are non-liquidating, proportionate, pro-rata distributions.
a. What gain, if any, must Tom recognize on these distributions?
b. What is Toms basis in the property?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
