Question

Becky has a​ $24,000 basis in her partnership interest. She receives a current distribution of​ $4,000 cash, unrealized receivables with a basis of​ $12,000 and an FMV of​ $16,000, and land held as an investment with a basis of​ $3,000 and an FMV of​ $8,000. The​ partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. The basis of her partnership interest following the distribution is ____.

Answer 1

basis of her partnership interest, the distribution is $5000

Step-by-step explanation:

given data

partnership interest = $24,000

cash = $4,000

FMV o= $16,000

unrealized receivables = $12,000

land investment = $3,000

FMV = $8,000

to find out

The basis of her partnership interest following the distribution is

solution

we get distribution here as given equation that is express as

distribution = partnership interest - cash - unrealized receivables - land investment ........................1

put here value we get

distribution = $24,000 - $4000 - $12000 - $3000

distribution = $5000

so here basis of her partnership interest, the distribution is $5000