Question
Zach contributes land with a FMV of $38,000 and a basis of $20,500 to a partnership on April 5, 2009. On June 6, 2015, the
Zach contributes land with a FMV of $38,000 and a basis of $20,500 to a partnership on April 5, 2009. On June 6, 2015, the partnership distributed the land to Art, a partner in the same partnership. At distribution, the land had a FMV of $42,000. Assume that both are equal partners in the partnership.
A. What is the effect of the distribution to Zach, if any?
B. What is the effect of the distribution to Art?
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Latest Certified Quality Auditor Certification Actual Questions
Authors: Pass For Life
1st Edition
108127705X, 978-1081277055
