Markell obtains the assets at $69417.The partnership interest of a partner is completely terminated by a liquidation distribution.
A liquidating distribution from partnership is what?
- The partnership interest of a partner is completely terminated by a liquidation distribution. A current dividend affects a partner's outside basis and capital accounting, but it does not result in the interest being terminated.
- When a partnership distributes non-cash assets to a partner as part of the liquidation of the partner's interest, the basis of those assets is the adjusted basis of that partner's interest in the partnership, less any cash received concurrently.
- A partnership interest obtained through a contribution has a basis equal to the cash amount plus the adjusted basis of any contributed property. IRC 722.
Explanation:
$68,695+722 = $69417.
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