What is tims basis in the distributed property

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Reference no: EM133921619

Problem

For each scenario, calculate the partner's or shareholder's basis in the nonliquidating distribution of noncash property. Enter the appropriate amount in the associated cell. If the amount is zero, enter a zero (0). Enter all amounts as positive whole numbers. Part I: Partnerships A B

Scenario Partner's Basis

A. Paul's partnership interest is $10,000. He received a cash distribution of $4,000 and a distribution of property. The partnership had an adjusted basis in the property of $7,000 and a fair market value (FMV) of $9,000. What is Paul's basis in the distributed property?

B. Steve's partnership interest is $16,000. He received a cash distribution of $5,000 and property with a FMV of $12,000 and an adjusted basis of $9,000. What is Steve's basis in the distributed property? Get the instant assignment help.

C. Anita contributed property with an adjusted basis of $5,000 and a FMV of $7,000 to a partnership in exchange for a partnership interest. The partnership distributed the property to Tim, another partner, 2 years later when the FMV of the property was $8,000, and Tim's basis in the partnership was $30,000. What is Tim's basis in the distributed property?

D. Susan contributed land in exchange for a 25% partnership interest. The FMV of the land at that time was $50,000, and Susan's adjusted basis was $40,000. Four years later, the partnership distributed the contributed land back to Susan. The fair market value at that time was $55,000. What is Susan's basis in the land?

Reference no: EM133921619

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