Riley is a 50% partner in the RF Partnership and has an outside basis of $56,000 at the end of the year prior to any distributions. On December 31, Riley receives a proportionate operating distribution of $6,000 cash and a parcel of land with a $14,000 fair value and an $8,000 basis to RF. What is Riley's basis in the distributed property?

Question

Quizplus · Accepted Answer

Riley takes a transferred basis in the distributed property. The cash has a basis equal to $6,000 and the land has a basis equal to $8,000 (RF's basis in the land).

Riley Is a 50% Partner in the RF Partnership and Has