Byron is a partner in the Dowdy Group. At the close of the current year, Byron's basis in the partnership is $34,000. At that time, the partnership distributes cash of $8,000 and property with a basis of $9,000 and a fair market value of $13,000 to each partner. What is Byron's basis in the partnership after the distribution?
A)$13,000
B)$17,000
C)$26,000
D)$34,000

Question

Quizplus · Accepted Answer

Byron's basis in the partnership after the distribution is calculated by subtracting the cash distribution ($8,000) and the basis of the property distributed ($9,000) from his original basis in the partnership ($34,000). Thus, $34,000 - $8,000 - $9,000 = $17,000.

Byron Is a Partner in the Dowdy Group