Calculate jason basis in the land

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Jason's outside basis in his interest in the KICK Partnership is $420,000. In a proportionate nonliquidating distribution, the partnership distributes to him cash of $100,000, inventory (fair market value of $90,000, basis to the partnership of $60,000), and land (fair market value of $100,000, basis to the partnership of $75,000). The partnership continues in existence.

A. Does the partnership recognize any gain or loss as a result of this distribution?

B. Does Jason recognize any gain or loss as a result of this distribution?

C. Calculate Jason's basis in the land, in the inventory, and in the partnership interest immediately following the distribution.

Reference no: EM132443350

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