The smith , Jones and Johnson partnership owns three pieces of land. Each having

Question

The smith , Jones and Johnson partnership owns three pieces of land. Each having a basis of $10000. And a fair market value ( FMV) of $22000. On july1 of the current year Doe porches Johnson’s one third interest for its FMV of $22000. No section 754 election is made. Within two years of purchase, Does interest is liquidated by distributing one of the parcels of land to Doe. Based on this information, whatcha of the following statement is the most true? A a section 732 (d) election would give Doe a basis of $22000 instead of $10000 B Doe is not eligible for a section 732(d)election C Jonson must make a section 732(d) before leaving the partnership DThe partners must unanimously agree to make a section 732(d) election
The smith , Jones and Johnson partnership owns three pieces of land. Each having a basis of $10000. And a fair market value ( FMV) of $22000. On july1 of the current year Doe porches Johnson’s one third interest for its FMV of $22000. No section 754 election is made. Within two years of purchase, Does interest is liquidated by distributing one of the parcels of land to Doe. Based on this information, whatcha of the following statement is the most true? A a section 732 (d) election would give Doe a basis of $22000 instead of $10000 B Doe is not eligible for a section 732(d)election C Jonson must make a section 732(d) before leaving the partnership DThe partners must unanimously agree to make a section 732(d) election
A a section 732 (d) election would give Doe a basis of $22000 instead of $10000 B Doe is not eligible for a section 732(d)election C Jonson must make a section 732(d) before leaving the partnership DThe partners must unanimously agree to make a section 732(d) election

Explanation / Answer

Answer

A ) a section 732(d) election would give Doe a basis of 22000 instead of 10000

according to the section 732 (d) the partner acquired his interest by a transfer to which

section 754 does not apply and the distribution is property other than cash is made with respect

to this transferred property within two years after such transfer that he could be elected to treat

adjusted basis of property as his partnership

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