When Rachel's Basis in Her Interest in the RST Partnership

question 14

Essay

$$\begin{array} { l l } \text { Predistribution basis in JJ } & \$ 50,000 \\\text { Minus: money received } & ( 8,000 ) \\\text { carry over basis in A/R } & ( 0 ) \\\text { carry over basis in land } & ( \underline { 28,000 } ) \\\text { Postdistribution basis in JJ } & \$ 14,000\end{array}$$ When Rachel's basis in her interest in the RST Partnership is $40,000, she receives a current distribution of office equipment. The equipment has an FMV of $60,000 and a basis of $50,000. Rachel will not use the office equipment in a business activity. What tax issues should Rachel consider with respect to the distribution?

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Definitions:

Subordinates

Individuals within an organization who are at a lower position or rank than others and typically report to a superior.

Dismiss

To officially order or decide that something or someone should be removed from consideration or a position.

Delegation

The process of assigning responsibility and authority to others to carry out specific activities while retaining ultimate accountability.

Development

The process of growth, progress, or evolution of an individual, organization, or system.