Two Years Ago, Marcus Contributed Land with a Basis of $6,000

question 141

True/False

Two years ago, Marcus contributed land with a basis of $6,000 and a fair market value of $20,000 in exchange for a
30% interest in the MNO LLC. This year when the value was $25,000, that property was distributed to Jamal whose basis in the LLC interest was $50,000 before the distribution. Marcus recognizes a gain of $14,000 and increases his basis in his LLC interest by that same amount; Jamal takes a $20,000 basis in the distributed property.

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Definitions:

Paraplegic

Paraplegic refers to a person who has lost the ability to move or feel both legs and sometimes parts of the lower body, often due to spinal cord injury or disease.

Axillary Crutch

A type of mobility aid that helps support the body's weight while walking, fitting under the armpit and held by the hand.

Platform Crutch

A type of crutch that has a platform for the forearm to rest upon, providing support and stability for individuals who cannot use traditional underarm crutches.

Immobility

The inability to move freely, which can result from various medical conditions, leading to complications like muscle weakness or bedsores.