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Adnan Had an Adjusted Basis of $11,000 for His Interest

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Essay

Adnan had an adjusted basis of $11,000 for his interest in the Adnan and Donnell Partnership on December 31. On this date, Adnan received from the partnership, in complete liquidation of his interest, $10,000 cash and land with a $2,000 basis to the partnership and a $3,000 FMV. What is Adnan's basis for the land distributed to him?


Definitions:

mg

Milligrams, a unit of mass equal to one thousandth of a gram.

Insulin Syringe

A syringe designed specifically for injecting insulin, often marked with fine units of measurement for precise doses.

Tuberculin Syringe

A syringe designed for administering tuberculosis tests, such as the Mantoux test, often marked in tenths and hundredths of a milliliter for precise doses.

mL

A milliliter, a unit of volume in the metric system equal to one thousandth of a liter.

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