Connie owns a one-third capital and profits interest in the calendar year CAB Partnership. Her adjusted basis for her partnership interest was $120,000 when she received a proportionate current (nonliquidating) distribution of the following assets.

a. Calculate Connie's recognized gain or loss on the distribution if any.
b. Calculate Connie's basis in the land received.
c. Calculate Connie's basis for her partnership interest after the distribution.

Question

Connie owns a one-third capital and profits interest in the calendar year CAB Partnership. Her adjusted basis for her partnership interest was $120,000 when she received a proportionate current (nonliquidating) distribution of the following assets.

a. Calculate Connie's recognized gain or loss on the distribution if any.
b. Calculate Connie's basis in the land received.
c. Calculate Connie's basis for her partnership interest after the distribution.

Quizplus · Accepted Answer

The Answer of Connie owns a one-third capital and profits interest in the calendar year CAB Partnership. Her adjusted basis for her partnership interest was $120,000 when she received a proportionate current (nonliquidating) distribution of the following assets.

a. Calculate Connie's recognized gain or loss on the distribution if any.
b. Calculate Connie's basis in the land received.
c. Calculate Connie's basis for her partnership interest after the distribution.

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