Kathy is a 25 percent partner in the KDP Partnership and receives a parcel of land with a fair value of $160,000 (inside basis of $120,000) in complete liquidation of her partnership interest. Kathy's outside basis immediately before the distribution is $210,000. KDP currently has a §754 election in effect and has no hot assets or liabilities. What is KDP's special basis adjustment from the distribution? Multiple Choice $0. $40,000 positive basis adjustment. $90,000 positive basis adjustment. $90,000 negative basis adjustment.
Kathy is a 25 percent partner in the KDP Partnership and receives a parcel of land with a fair value of $160,000 (inside basis of $120,000) in complete liquidation of her partnership interest. Kathy's outside basis immediately before the distribution is $210,000. KDP currently has a §754 election in effect and has no hot assets or liabilities. What is KDP's special basis adjustment from the distribution? Multiple Choice $0. $40,000 positive basis adjustment. $90,000 positive basis adjustment. $90,000 negative basis adjustment.
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 33CE
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Question
Kathy is a 25 percent partner in the KDP
Multiple Choice
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$0.
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$40,000 positive basis adjustment.
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$90,000 positive basis adjustment.
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$90,000 negative basis adjustment.
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