$$\begin{array} { l l }
\text { Predistribution basis in JJ } & \$ 50,000 \
\text { Minus: money received } & ( 8,000 ) \
\text { carry over basis in A/R } & ( 0 ) \
\text { carry over basis in land } & ( \underline { 28,000 } ) \
\text { Postdistribution basis in JJ } & \$ 14,000
\end{array}$$ When Rachel's basis in her interest in the RST Partnership is $40,000, she receives a current distribution of office equipment. The equipment has an FMV of $60,000 and a basis of $50,000. Rachel will not use the office equipment in a business activity. What tax issues should Rachel consider with respect to the distribution?

Question

$$\begin{array} { l l } 
\text { Predistribution basis in JJ } & \$ 50,000 \
\text { Minus: money received } & ( 8,000 ) \
\text { carry over basis in A/R } & ( 0 ) \
\text { carry over basis in land } & ( \underline { 28,000 } ) \
\text { Postdistribution basis in JJ } & \$ 14,000
\end{array}$$ When Rachel's basis in her interest in the RST Partnership is $40,000, she receives a current distribution of office equipment. The equipment has an FMV of $60,000 and a basis of $50,000. Rachel will not use the office equipment in a business activity. What tax issues should Rachel consider with respect to the distribution?

Quizplus · Accepted Answer

The Answer of $$\begin{array} { l l } 
\text { Predistribution basis in JJ } & \$ 50,000 \
\text { Minus: money received } & ( 8,000 ) \
\text { carry over basis in A/R } & ( 0 ) \
\text { carry over basis in land } & ( \underline { 28,000 } ) \
\text { Postdistribution basis in JJ } & \$ 14,000
\end{array}$$ When Rachel's basis in her interest in the RST Partnership is $40,000, she receives a current distribution of office equipment. The equipment has an FMV of $60,000 and a basis of $50,000. Rachel will not use the office equipment in a business activity. What tax issues should Rachel consider with respect to the distribution?

When Rachel's Basis in Her Interest in the RST Partnership