Latesha Contributes a Building with a FMV of $125,000 and a Basis

question 20

Essay

Latesha contributes a building with a FMV of $125,000 and a basis of $115,000 to a partnership on January 4,2014.On December 15,2017,the partnership distributed the building to Katie,a partner in the same partnership.At distribution,the building had a FMV of $129,000.
a.What is the effect of the distribution on Latesha,if any?
b.What is the effect of the distribution to Katie?

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Definitions:

Erectile Failure

The inability to achieve or maintain an erection sufficient for satisfactory sexual activity, also known as erectile dysfunction.

Vascular Problems

Issues related to the circulatory system, including arteries, veins, and capillaries, that can affect blood flow and overall health.

Erectile Disorder

A sexual disorder marked by the incapacity to achieve or sustain an erection for sexual intercourse.

Clogged Arteries

A condition where fatty deposits, or plaques, build up in the arterial walls, leading to reduced blood flow and increasing the risk of cardiovascular diseases.