Oliver Receives a Nonliquidating Distribution of Land Having a $25,000

question 172

Essay

Oliver receives a nonliquidating distribution of land having a $25,000 adjusted basis and a $32,000 FMV from th Partnership. At the time of the distribution, Oliver's basis in his partnership interest is $30,000.
a. What is the amount of recognized gain or loss on the distribution?
b. What is Oliver's basis in his partnership interest following the distribution?
c. What is Oliver's basis in the land?

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Definitions:

Oral Warranties

Guarantees made verbally about the quality or function of a product, not in written form.

Comparative Negligence

A legal doctrine that reduces the plaintiff's damages award by the percentage of their fault in causing the injury.

Strict Liability

Strict Liability is a legal principle that holds an individual or entity responsible for damages or harm caused by their actions, irrespective of negligence or intent.

Contributory Negligence

is a defensive legal strategy used to claim that an injured party cannot recover damages if it is demonstrated that they were also at fault, even partially, for their own injury.