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    Basis in liquidating distributions of a partnership

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    I have:

    Cash Basis 8000 FMV 8000
    Land A Basis 20000 FMV 45000
    Land B Basis 20000 FMV 25000

    In a proportionate liquidating distribution, my basis in the partnership is 58000.

    What should my basis in the distributed assets be for

    Land A
    Land B

    Please show work.

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    Solution Summary

    This solution illustrates how to compute a partner's basis in the assets he or she receives in a partnership's liquidation.