Doris owns a one-third capital and profits interest in the calendar-year DB Partnership.Her adjusted basis for her partnership interest on July 1 of the current year is $20,000.On that date, she receives an operating distribution of her share of partnership assets shown below:
$$\begin{array}{l}
\quad \quad \text { Partrership's Basis in}\
\begin{array} { c r c c }
&\text { Asset } & { \text { Asset's Fair Market Value } } \
\text { Cash}&\$ 81,000 & \$ 81,000 \
\text { Inventory}& 36,000 & 24,000 \
\text { Land} & 120,000 & 135,000
\end{array}
\end{array}$$ What is the amount and character of Doris's gain or loss on the distribution? What is her basis in the distributed assets?

Question

Doris owns a one-third capital and profits interest in the calendar-year DB Partnership.Her adjusted basis for her partnership interest on July 1 of the current year is $20,000.On that date, she receives an operating distribution of her share of partnership assets shown below:
 $$\begin{array}{l}
\quad \quad \text { Partrership's Basis in}\
\begin{array} { c r c c } 
&\text { Asset } & { \text { Asset's Fair Market Value } } \
\text { Cash}&\$  81,000 & \$  81,000 \
\text { Inventory}& 36,000 & 24,000 \
\text { Land} & 120,000 & 135,000
\end{array}
\end{array}$$ What is the amount and character of Doris's gain or loss on the distribution? What is her basis in the distributed assets?

Quizplus · Accepted Answer

The Answer of Doris owns a one-third capital and profits interest in the calendar-year DB Partnership.Her adjusted basis for her partnership interest on July 1 of the current year is $20,000.On that date, she receives an operating distribution of her share of partnership assets shown below:
 $$\begin{array}{l}
\quad \quad \text { Partrership's Basis in}\
\begin{array} { c r c c } 
&\text { Asset } & { \text { Asset's Fair Market Value } } \
\text { Cash}&\$  81,000 & \$  81,000 \
\text { Inventory}& 36,000 & 24,000 \
\text { Land} & 120,000 & 135,000
\end{array}
\end{array}$$ What is the amount and character of Doris's gain or loss on the distribution? What is her basis in the distributed assets?

Doris Owns a One-Third Capital and Profits Interest in the Calendar-Year