a. What is Berdine's basis in the distributed land? b. If an optional $ 754 adjustment-to-basis election is in effect, by what amount does the partnership adjust the basis of its remaining property? If that adjustment is allocated to depreciable property, to whom does the partnership allocate the resulting depreciation deductions?
a. What is Berdine's basis in the distributed land? b. If an optional $ 754 adjustment-to-basis election is in effect, by what amount does the partnership adjust the basis of its remaining property? If that adjustment is allocated to depreciable property, to whom does the partnership allocate the resulting depreciation deductions?
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 23CE
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Transcribed Image Text:Berdine has a basis of $247,000 in her partnership interest and receives land with an adjusted basis to the partnership of $592,800 in
termination of her interest. Assume the partnership holds no hot assets and the entire payment is a § 736(b) payment with the tax
treatment determined under the proportionate liquidating distribution rules.
a. What is Berdine's basis in the distributed land?
b. If an optional § 754 adjustment-to-basis election is in effect, by what amount does the partnership adjust the basis of its remaining
property?
If that adjustment is allocated to depreciable property, to whom does the partnership allocate the resulting depreciation deductions?
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