Victoria is a 50 percent partner in VR Partners.Her partnership tax basis is $28,000 on December 31 when she receives a current distribution of property with a partnership tax basis of $25,000 and a fair market value of $46,000.What is Victoria's tax basis in the distributed property?

Question

Quizplus · Accepted Answer

Victoria's tax basis in the distributed property would be $25,000, which is the partnership's tax basis in the property at the time of distribution. In a current distribution, the partner's basis in the distributed property is equal to the partnership's basis in the property, but not more than the partner's outside basis in the partnership interest immediately before the distribution, after considering any cash received.

Victoria Is a 50 Percent Partner in VR Partners