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Business, 03.04.2021 01:00 lukeakalucas

Justin and Lauren are equal partners in the PJenn Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests: (Leave no answer blank. Enter zero if applicable.) Partner Outside Basis
Justin $23,400
Lauren $23,400

On December 31 of the current year, the partnership makes a pro rata operating distribution of:

Partner Distribution
Justin Cash $26,800
Lauren Cash $19,200
Property $7,600 (FMV) ($2,440 basis to partnership)

Required:
a. What is the amount and character of Justin's recognized gain or loss?
b. What is Justin's remaining basis in his partnership interest?
c. What is the amount and character of Lauren's recognized gain or loss?

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Answers: 1

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