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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 |
$ 70,000 |
$ 70,000 |
|
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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Expert Solution
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 agoRelated Solutions
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