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Week 5 mini-questions
Javier is retiring from the JKL Partnership. In January of the
current year, he has a $100,000 basis in his partnership interest
when he receives a$10,000 cash distribution. The partnership
plans to distribute $10,000 each month this year, and Javier will
cease to be a partner after the December payment. Is the
January payment to Javier
a current distribution or a liquidating distribution?
§
Lia has a $40,000 basis in her partnership interest just before
receiving a parcel of land as a non-liquidating (current)
distribution. The partnership purchased the land, and Lia has no
pre-contribution gain. Under what conditions will Lia's basis in
the land be $40,000? Under what conditions will Lia's basis in
the land be a carryover basis from the partnership's basis in the
land?
Interest before receiving a non-liquidating (current) distribution
of property having a $4,500 basis and a $6,000 FMV from the
CDE Partnership. Cindy has a choice of receiving either
inventory or a capital asset. She will hold the distributed
property as an investment for no more than two years before she
sells it. What tax difference (if any) will occur because of
Cindy's selection of one property or the other to be distributed
by the partnership?
Mariel has a $60,000 basis in her partnership interest just
before receiving a parcel of land as a liquidating distribution.
She has no remaining pre-contribution gain and will receive no
other distributions. Under what conditions will Mariel's basis in
the land be $60,000?
Week 5 mini-questionsJavier is retiring from the JKL Partnership.docx

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Week 5 mini-questionsJavier is retiring from the JKL Partnership.docx

  • 1. Week 5 mini-questions Javier is retiring from the JKL Partnership. In January of the current year, he has a $100,000 basis in his partnership interest when he receives a$10,000 cash distribution. The partnership plans to distribute $10,000 each month this year, and Javier will cease to be a partner after the December payment. Is the January payment to Javier a current distribution or a liquidating distribution? § Lia has a $40,000 basis in her partnership interest just before receiving a parcel of land as a non-liquidating (current) distribution. The partnership purchased the land, and Lia has no pre-contribution gain. Under what conditions will Lia's basis in the land be $40,000? Under what conditions will Lia's basis in the land be a carryover basis from the partnership's basis in the land? Interest before receiving a non-liquidating (current) distribution of property having a $4,500 basis and a $6,000 FMV from the CDE Partnership. Cindy has a choice of receiving either inventory or a capital asset. She will hold the distributed property as an investment for no more than two years before she sells it. What tax difference (if any) will occur because of Cindy's selection of one property or the other to be distributed by the partnership? Mariel has a $60,000 basis in her partnership interest just before receiving a parcel of land as a liquidating distribution. She has no remaining pre-contribution gain and will receive no other distributions. Under what conditions will Mariel's basis in the land be $60,000?