Riley is a 50% partner in the rf partnership and has an outside basis of $56,000 at the end of the year prior to any distributions. on december 31, riley receives a proportionate operating distribution of $6,000 cash and a parcel of land with a $14,000 fair value and an $8,000 basis to rf. what is the amount and character of riley's recognized gain or loss and what is his basis in his partnership interest?

partnership interest $42000 basis

Explanation:

given data

outside basis = $56000

operating distribution = $6000

fair value = $14000

basis to RF = $8000

to find out

partnership interest

solution

we will find  partnership interest by given formula that is

partnership interest = outside basis - operating distribution - basis to RF

put here all these value

partnership interest = outside basis - operating distribution - basis to RF

partnership interest = 56000 - 6000 - 8000

partnership interest = $42000

so here partnership interest $42000 basis

answerindustrial revolution;