97.Jenny has a $54,000 outside basis in her partnership interest. The partnershi

Question

97.Jenny has a $54,000 outside basis in her partnership interest. The partnership makes a proportionate non-liquidating distribution to Jenny of a land with an $80,000 fair value and a $64,000 basis to the partnership. What is Jenny's basis in the land after the distribution and what is her remaining basis in the partnership after the distribution?

A. $64,000 land basis, $0 outside basis

B. $54,000 land basis, $10,000 outside basis

C. $64,000 land basis, $5,000 outside basis

D. $80,000 land basis, $10,000 outside basis

Explanation / Answer

Answer si option (a) $64000 Land basis and , $0 outside basis Jenny takes a transferred basis in the land equal to the value $64000 Remaining basis Outside basis 54000 debt portion 0 54000 Carry over basis For land -64000 Basis Left in her paartnership -10000 her remaining bais in the partnership after distribution can not be negitive, so it taken as Zero

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