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What is the amount of the special basis adjustment

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Question - Cliff's basis in his Aero Partnership interest is $11,000. Cliff receives a distribution of $22,000 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet:

Tax Basis

FMV

Assets:

Cash

$22,000

$22,000

Investment

8,800

8,800

Land

2,200

35,200

Totals

$33,000

$66,000

Liabilities and capital:

Capital

- Chris

11,000

- Cliff

11,000

- Cooper

11,000

Totals

$33,000

Required - If Aero has a §754 election in place, what is the amount of the special basis adjustment?

Reference no: EM132448949

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