Amount-Passive Activity Loss- Tax Basis t- Tax Basis - Passive Activity Loss Bas

Question

Amount-Passive Activity Loss- Tax Basis t- Tax Basis - Passive Activity Loss Basis At Risk Amount- None of the above basis and FMV of $110,000 ta 21. Mares contributed ership in exchange for a Marisa contributed property with a $75,000 a 30% interest in partnership capital and profes o the MOA MM had net taxable income of $60,000 and tax exempt uring the first year o Her share of partnership reccurse liabilitles on the la income of 512000 distributed $so,000 cash to Marina. of partnership day of the partnership year interest at year-end is: was $30,000. Marina's adjusted basis ther outside basis) for her $30,000. FTV 110K 6 75 a. $86,000 b. $4,000. C $34,000 d. $22,000 e. None of the above. 22. Sam and lack formed a partnership. Sam received 50% interest in partnership capital and contributing land with a basis of $80,000 and FMV of $210,000. lack received a profits in exchange for 50% interest years after the contribution date, the land contributed by Sam is sold by partnership to a third party for $280,000, How much taxable gain will Sam recognize from the sale? in partnership capital and profits in exchange for contributing $210,000 of cash. Three $130,000 B. $165,000 C. $200,000 D.$75,000 E. None of the above 23. Sarah received a proportionate nonliquidating distribution from Orange Partnership. The distribution consisted of $20,000 cash and property with an adjusted basis to the partnership of and FMV of $120,000. Immediately before the distribution, Sarah's adjusted basis for her partnership interest is $65,000. Sarah's basis in the noncash property received is A. $55,000 B. $80,000 C.$45,000 D.$100,000 E. None of the above $80,000

Explanation / Answer

21. option E. none of the above

22. option E. none of the above

sam recognises his share of= 200000*50%= 100000 in his return

23. option c.45000

in non liquidation distribution no gain is recognised rather noncash property basis is adjusted.

here, total basis before distribution is 65000

less: cash received 20000

Maximum basis on non cash distribution 45000

since no gain or loss should be recognised the basis of non cash property received will be adjusted, hence the basis of non cash property will be lesser of the basis of partner in the partnership and the basis of property.

Hence basis of noncash property in the hand of partner = lesser of 80000 and 45000= 45000

NBV of property 75000 Share of taxable income 18000 share of tax exempt income 36000 share of recourse liabilities 30000 Less: cash taken -50000 Outside basis 109000

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