Doris Owns a 1/3 Capital and Profits Interest in the Calendar-Year

question 66

Essay

Doris owns a 1/3 capital and profits interest in the calendar-year DB Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $20,000. On that date, she receives an operating distribution of her share of partnership assets shown below: $$\begin{array} { | l | c | c | } \hline & \text { Partnership's Basis in Asset } & \text { Asset's Fair Market Value } \\\hline \text { Cash } & \$ 81,000 & \$ 81,000 \\\hline \text { Inventory } & 36,000 & 24,000 \\\hline \text { Land } & 120,000 & 135,000 \\\hline\end{array}$$ What is the amount and character of Doris' gain or loss on the distribution? What is her basis in the distributed assets?

---

Definitions:

Genome

The complete set of DNA, including all of its genes, in a person or other organism, which contains all the biological information needed to build and maintain that organism.

Huntington Disease

A genetic neurological disorder characterized by motor, cognitive, and psychiatric symptoms, progressively leading to severe physical and mental decline.

Alzheimer Disease

A progressive neurological disorder that causes brain cells to degenerate and die, leading to memory loss and cognitive decline.

Involuntary Movements

Movements that occur without conscious control, often indicative of neurological disorders or conditions affecting motor control.