If Josh's partnership basis was $5,000 and he received a distribution of land that had a basis of $10,000,Josh would be required to recognize a $5,000 gain.

Name: If Josh's partnership basis was $5,000 and he received a distribution of land that had a basis of $10,000,Josh would be required to recognize a $5,000 gain.
Brand: Quizplus
Rating: 4.7 (40 reviews)

Question

Quizplus · Accepted Answer

Josh's basis in the distributed land would be $10,000, which is higher than his partnership basis of $5,000. Therefore, Josh would not recognize a gain on the distribution of the land.

If Josh's Partnership Basis Was $5,000 and He Received a Distribution