Josh has a 25% capital and profits interest in the calendar-year GDJ Partnership. His adjusted basis...

Josh has a 25% capital and profits interest in the calendar-year GDJ Partnership. His adjusted basis for his partnership interest on October 15 of the current year is $300,000. On that date, the partnership makes a proportionate liquidating distribution of the following assets to Josh.

	Partnership’s Basis in Asset	Asset’s Fair Market Value
Cash Inventory	$ 70,000 120,000	$ 70,000 150,000

a.	Determine Josh’s basis in the inventory and his recognized gain or loss on the liquidating distribution, if any.
b.	Assume that in addition to the cash and inventory, GDJ distributed land to Josh having a basis to GDJ of $5,000 and a fair market value of $8,000. Determine Josh’s basis in the inventory and the land and his recognized gain or loss on the liquidating distribution, if any.

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Josh has a 25% capital and profits interest in the calendar-year GDJ Partnership. His adjusted basis for his partnership interest on October 15 of the current year is $300,000.

ekkarill92 answered 1 year ago

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Josh has a 25% capital and profits interest in the calendar-year GDJ Partnership. His adjusted basis...

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