Last Year, Miguel Contributed Nondepreciable Property with a Basis of $50,000

question 1

Multiple Choice

Last year, Miguel contributed nondepreciable property with a basis of $50,000 and a fair market value of $75,000 to the Starling Partnership in exchange for a 25% interest in the partnership. In the current year, he receives a nonliquidating distribution from the partnership of other property with a basis to the partnership of $50,000 and a fair market value of $62,000. The basis in his partnership interest at the time of the distribution was $60,000. How much gain or loss does Miguel recognize on the distribution? (Assume no other distributions have been made to Miguel, the property he originally contributed is still owned by the partnership, and this is not a disguised sale transaction.)

• A)$0 gain or loss.
• B)$2,000 loss.
• C)$2,000 gain.
• D)$8,000 gain.
• E)$10,000 gain.

---

Definitions:

Personal Characteristics

Traits or qualities that define an individual's personality, behavior, and appearance, which can influence their performance and interactions in various settings.

True Caring

The genuine concern and empathy a salesperson shows for their customers' needs and problems, aiming to build trust and relationships.

Financial Rewards

Monetary benefits received as compensation or incentive for achieving specific goals or performances.

Solely Based

Being solely based refers to something that is completely or exclusively grounded on one particular aspect, factor, or source.