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:
$\begin{array}{rrr}
&\text { Partnership's }&\text { Asset's Fair }\
&\text { Basis in Asset}&\text { Market Value }\
\text {Cash}&81,000& \$ 81,000 \
\text {Inventory}&36,000& 24,000 \
\text {Land}&120,000& 135,000
\end{array}$

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:
 $\begin{array}{rrr}
&\text { Partnership's }&\text { Asset's Fair }\
&\text { Basis in Asset}&\text { Market Value }\
\text {Cash}&81,000& \$  81,000 \
\text {Inventory}&36,000& 24,000 \
\text {Land}&120,000&  135,000
\end{array}$

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:
 $\begin{array}{rrr}
&\text { Partnership's }&\text { Asset's Fair }\
&\text { Basis in Asset}&\text { Market Value }\
\text {Cash}&81,000& \$  81,000 \
\text {Inventory}&36,000& 24,000 \
\text {Land}&120,000&  135,000
\end{array}$

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