13. Ellen is a 25 percent partner in EFGH Partners, a general partnership. Ellen

Question

13.        Ellen is a 25 percent partner in EFGH Partners, a general partnership. Ellen’s adjusted basis in her partnership interest is $18,000. During the current taxable year, Ellen received a non-liquidating distribution of land from EFGH Partners that had an adjusted basis to the partnership of $23,000 and a fair market value of $45,000 on the date of distribution. What is Ellen’s basis in the land received in the non-liquidating distribution?

a.         0

b.         $18,000

c.          $23,000

d.              $45,000

Explanation / Answer

Ellen’s basis in the land received in the non-liquidating distribution is $18000, which is the basis of partnership interest. Option B is correct

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.