Doris owns a 1/3 capital and profits interest in the calendar-year DB Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $20,000. On that date, she receives an operating distribution of her share of partnership assets shown below:

What is the amount and character of Doris' gain or loss on the distribution? What is her basis in the distributed assets?

Question

Doris owns a 1/3 capital and profits interest in the calendar-year DB Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $20,000. On that date, she receives an operating distribution of her share of partnership assets shown below:
  
What is the amount and character of Doris' gain or loss on the distribution? What is her basis in the distributed assets?

Quizplus · Accepted Answer

The Answer of Doris owns a 1/3 capital and profits interest in the calendar-year DB Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $20,000. On that date, she receives an operating distribution of her share of partnership assets shown below:
  
What is the amount and character of Doris' gain or loss on the distribution? What is her basis in the distributed assets?

Doris Owns a 1/3 Capital and Profits Interest in the Calendar-Year