The Total Bases of All Distributed Property in the Partner's

question 65

Multiple Choice

The total bases of all distributed property in the partner's hands following a nonliquidating distribution is limited to

• A)the partner's predistribution basis in his partnership interest.
• B)the FMV of the property distributed.
• C)the partnership's bases in the distributed property.
• D)the predistribution FMV of the partner's partnership interest.

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Definitions:

Bankruptcy Trustee

A legally appointed individual responsible for managing the financial affairs of a person or business declared bankrupt, including asset liquidation and disbursing proceeds to creditors.

Chapter 7 Bankruptcy

A process under federal law designed to eliminate unsecured debts and liquidate non-exempt assets to pay creditors.

Chapter 7

This typically refers to a chapter of the U.S. Bankruptcy Code dealing with liquidation, where a debtor's assets are sold to pay off creditors.

Secured Party

An individual or entity that has been given a security interest in the property of a debtor as collateral for a loan or obligation.