Reference no: EM131248190

In 2013, Adrianna contributed land with a basis of $16,000 and a fair market value of $25,000 to the A&I Partnership in exchange for a 25% interest in capital and profits. In 2016, the partnership distributes this property to Isabel, also a 25% partner, in a nonliquidating distribution. The fair market value had increased to $30,000 at the time the property was distributed. Isabel's and Adrianna's bases in their partnership interests were each $40,000 at the time of the distribution. If there is no gain or loss or if an amount is zero, enter "0". a. Does Adrianna recognize any gain or loss on the distribution to Isabel? Adrianna recognizes of $ . Adrianna's basis in her partnership interest is $ . b. Isabel's basis in the land she received in the distribution is $ . c. Isabel recognizes of $ on the distribution of the property. Her partnership interest basis is $ . d. What if Isabel later sold the land for its $30,000 fair market value? How would you characterize this transaction for Isabel and Adrianna? Isabel would recognize of $ . This result appears because pays tax on postcontribution gain, and pays tax on precontribution gain. e. If Adrianna originally contributed the property to the partnership in 2004, does she recognize any gain or loss on the distribution to Isabel? She recognizes of $ . Isabel's basis in the property would be $ .