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?

Quizplus · Accepted Answer

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