10. Rufus is a one-quarter partner in the Adventure partnership.
On January 1 of the current year, Adventure distributes $13,000
cash to Rufus in complete liquidation of his interest. Adventure
has only capital assets and no liabilities at the date of the
distribution. Rufus' basis in his partnership interest is $9,000.
What is the amount of Rufus' recognized gain or loss?
11. AJ is a 30% partner in the Trane partnership, a calendar
year-end entity. On January 1, AJ has an outside basis in his
interest in Trane of $73,000, which includes his share of the
$50,000 of partnership liabilities. Trane generates $42,000 of
income during the year and does not make any changes to its
liabilities. On December 31, Trane makes a proportionate
distribution of the following assets to AJ to terminate his
partnership interest:
Tax Basis FMV
Inventory $57,000 $65,000
Land $30,000 $25,000
Totals $87,000 $90,000
What is the amount of any recognized gain or loss to AJ?
12. Same facts as the prior question, what is AJ's basis in
the land?
13. Bryce's basis in the Markit Partnership is $58,000. In
a proportionate liquidating distribution, Bryce receives the
following assets:
Tax Basis FMV
Cash $10,000 $10,000
Land A $20,000 $45,000
Land B $20,000 $25,000
What is Bryce's basis in the Land B?