Josh Has a 25% Capital and Profits Interest in the Calendar-Year

question 30

Essay

Josh has a 25% capital and profits interest in the calendar-year GDJ Partnership. His adjusted basis for his partnership interest on October 15 of the current year is $300,000. On that date, the partnership liquidates and makes a proportionate distribution of the following assets to Josh.
Partnership's Basis in Asset Asset's Fair Market Value
Cash $ 70,000 $ 70,000
Inventory 120,000 150,000
a. Calculate Josh's recognized gain or loss on the liquidating distribution, if any.
a. change if the partnership also distributed a small parcel of land it had held for investment to Josh? Assume the land has a $5,000 adjusted basis (FMV is $8,000) to the partnership.
b. How would your answer to

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Definitions:

Financial Policies

Refer to the guidelines and rules that organizations or governments put in place to manage their income, expenses, and overall financial health.

Implement the Intervention

The process of putting into action a plan or program designed to bring about a specific outcome.

Process Evaluation

This refers to the systematic collection of information about a program or project to understand how it is operating and to assess whether it is achieving its goals.

Impact Evaluation

Impact evaluation assesses the changes that can be attributed to a particular intervention, including what outcomes would have happened in the absence of the intervention. It focuses on the causality between actions and outcomes.