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

question 85

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:
What is the amount and character of Doris' gain or loss on the distribution? What is her basis in the distributed assets?
$$\begin{array} { | l | r | r | } \hline & \text { Partnership's Basis in } & \text { Assets Fairmarket } \\&\text { Asset } & \text { Value } \\\hline \text { Cash } & \$ 81,000 & \$ 81,000 \\\hline \text { Inventory } & 36,000 & 24,000 \\\hline \text { Land } & 120,000 & 135,000 \\\hline\end{array}$$

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Definitions:

Intersectionality

A framework for understanding how various forms of social stratification, such as race, gender, and class, intersect and impact individuals and groups.

Gender Inequality

The disparity in status, power, and opportunity between individuals based on their gender, manifesting in various areas of social, economic, and political life.

Sociologists

Experts or scientists who study human societies and social behavior by examining the groups, cultures, organizations, social institutions, and processes that develop when people interact and work together.

Single Fathers

Male parents who are raising their children without the presence or involvement of the children's mother, due to various circumstances.