Lamar is one of 10 equal partners in the Trident Partnership. During the taxation year ending December 31, 2020, Trident distributes debenture bonds that were held for investment purposes to each of the partners. These bonds have an adjusted cost base of $567,750 and, at the time of transfer, they have a fair market value of $611,750. Lamar receives 10 percent of these bonds. At the time of the transfer, the adjusted cost base of Lamar's partnership interest is $75,800. What are the tax consequences to Trident and Lamar with respect to this distribution? Your answer should include the adjusted cost base of Lamar's partnership interest on both December 31, 2020 and January 1, 2021.

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The Answer of Lamar is one of 10 equal partners in the Trident Partnership. During the taxation year ending December 31, 2020, Trident distributes debenture bonds that were held for investment purposes to each of the partners. These bonds have an adjusted cost base of $567,750 and, at the time of transfer, they have a fair market value of $611,750. Lamar receives 10 percent of these bonds. At the time of the transfer, the adjusted cost base of Lamar's partnership interest is $75,800. What are the tax consequences to Trident and Lamar with respect to this distribution? Your answer should include the adjusted cost base of Lamar's partnership interest on both December 31, 2020 and January 1, 2021.

Lamar Is One of 10 Equal Partners in the Trident