Scott Is a 50% Partner in the LS Partnership

question 12

Essay

Scott is a 50% partner in the LS Partnership. Scott has a basis in his partnership interest of $84,000 at the end of the current year, prior to any distribution. On December 31, Scott receives an operating distribution of $9,000 cash and a parcel of land with a $21,000 fair market value and a $12,000 basis to the partnership. LS has no debt or hot assets. What is the amount and character of Scott's recognized gain or loss? What is Scott's basis in the distributed property? What is Scott's ending basis in his partnership interest?

---

Definitions:

Truman

Truman refers to Harry S. Truman, the 33rd President of the United States, who served from 1945 to 1953, known for ending World War II by authorizing the use of atomic bombs against Japan.

Historians

Scholars who study and write about the past, interpreting historical sources and events.

Nation's Presidents

The elected leaders who have served as the head of state and government in a country's history.

Suburbs Growth

The expansion of residential areas outside the urban core, typically characterized by single-family homes, which became increasingly prevalent during the 20th century.