What are the tax consequences to david

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Reference no: EM133170572

Question - David's basis in the Jimsoo Partnership is $58,500. In a proportionate liquidating distribution, David receives cash of $8,100 and two capital assets: (1) Land A with a fair market value of $22,200 and a basis to Jimsoo of $17,650, and (2) Land B with a fair market value of $10,825 and a basis to Jimsoo of $17,650. Jimsoo has no liabilities.

Required -

1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to David (amount and character of gain or loss)?

2. What is David's basis in distributed assets?

Reference no: EM133170572

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