Adjusted basis for the partnership interest problem


Wendy receives a proportionate nonliquidating distribution from the WXY Partnership. The distribution consists of $75,000 cash and property with an adjusted basis to the partnership of $20,000 and a fair market value of $25,000. Immediately before the distribution, Wendy's adjusted basis for her partnership interest is $90,000. Wendy's basis in the noncash property received is:

a. $0.

b. $15,000.

c. $20,000.

d. $25,000.

e. None of the above.

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Accounting Basics: Adjusted basis for the partnership interest problem
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