sam-received-a-proportionate-non-liquidating-distribution-when-the-basis-on-his

Sam received a proportionate non-liquidating distribution when the basis on his partnership interest is 50000. His distribution includes cash of 10000, inventory (FMV=14000;basis=120000) and equipment (FMV=20000;basis 15000). Sam’s marginal tax rate is 25% and his long term capital gain tax is 15%. Assume he has sufficient long-term capital gains from the sale of stock. (proportionate non-liquidating distribution form)

a) how much gain or loss does Sam recognize?

b) What is Sam’s tax liability/benefits on the distribution?

c) What is Sam’s basis in the inventory?

d) What is Sam’s basis in the equipment?

e) what is Sam’s remaining basis in the partnership?

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