Partnership liquidating distribution worksheet

Each partner has

Each partner has $1,000 credited to it on the books of the partnership as its capital contribution. During the partnership's first taxable year, Asset 1 appreciates in value to $1,300.

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Each partner has $1,000 credited to it on the books of the partnership as its capital contribution. During the partnership's first taxable year, Asset 1 appreciates in value to $1,300.

,000 credited to it on the books of the partnership as its capital contribution. During the partnership's first taxable year, Asset 1 appreciates in value to

Each partner has $1,000 credited to it on the books of the partnership as its capital contribution. During the partnership's first taxable year, Asset 1 appreciates in value to $1,300.

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Each partner has $1,000 credited to it on the books of the partnership as its capital contribution. During the partnership's first taxable year, Asset 1 appreciates in value to $1,300.

,300.

partnership liquidating distribution worksheet-4partnership liquidating distribution worksheet-14

Therefore, T will have a basis in Asset 2 of ,666.67 following the distribution.

The basis adjustment is allocated under section 755, and the partnership's balance sheet appears as follows: Assume that PRS distributes Asset 2 to T in partial liquidation of T's interest in the partnership.

T has a basis adjustment under section 743(b) of 6.67 in Asset 2.

The basis of partnership property is adjusted as a result of the transfer of an interest in a partnership by sale or exchange or on the death of a partner only if the election provided by section 754 (relating to optional adjustments to the basis of partnership property) is in effect with respect to the partnership.

Whether or not the election provided in section 754 is in effect, the basis of partnership property is not adjusted as the result of a contribution of property, including money, to the partnership.