ST Parnership had the following assets\" Inventory FMV $28000 with a basis of $1

Question

ST Parnership had the following assets" Inventory FMV $28000 with a basis of $12,000- Land FMV of $70,000 and a basis of $48,000 and Equipment with FMV of $42,000 with basis of $32,000. Total is FMV $140,000 with baisis of $92,0000. Inventory is a Section 751 asset and there is $10,000 of Section 1245 recapture of depreciation on the equipment. S, a 50% partner, and T, her copartner, recieved a partial distribution from the partnership of the land. Each recieved land worth $35,000 with a basis of $24,000. What is S's recognized gain, ignoring partnership income? A. 0    B. $5,000 capital gain C. $5,000 ordinary gain or D. $20,000 ordinary gain.

Explanation / Answer

The S's recognised gain is "0", because the partnership is 100%, each partner ownes 50% partnership, calculating the land based on their partnership 'S' ownes exact amount on basis of land.

Therefore the answer is : A). 0

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