Tatia's basis in her TRQ partnership interest is $33,000. Tatia receives a distribution of $22,000 cash from TRQ in complete liquidation of her interest. The three partners in TRQ share profits, losses, and capital equally. TRQ has the following balance sheet: a. What is the amount and character of Tatia's recognized gain or loss? What is the effect on the partnership assets?b. If TRQ has a §754 election in place, what is the amount of the special basis adjustment?

Question

Tatia's basis in her TRQ partnership interest is $33,000. Tatia receives a distribution of $22,000 cash from TRQ in complete liquidation of her interest. The three partners in TRQ share profits, losses, and capital equally. TRQ has the following balance sheet:  a. What is the amount and character of Tatia's recognized gain or loss? What is the effect on the partnership assets?b. If TRQ has a §754 election in place, what is the amount of the special basis adjustment?

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The Answer of Tatia's basis in her TRQ partnership interest is $33,000. Tatia receives a distribution of $22,000 cash from TRQ in complete liquidation of her interest. The three partners in TRQ share profits, losses, and capital equally. TRQ has the following balance sheet:  a. What is the amount and character of Tatia's recognized gain or loss? What is the effect on the partnership assets?b. If TRQ has a §754 election in place, what is the amount of the special basis adjustment?

Tatia's Basis in Her TRQ Partnership Interest Is $33,000