Distributions
Response to the following problem:
AJ partnership distributes $10,000 cash and a building worth $80,000 (adjusted basis of $66,000) to one of its partners, Joe.
a. What are the tax consequences of the distribution if Joe's basis in AJ partnership is $46,000 immediately before the distribution?
b. How, if at all, would your answer to Part a. change if Joe's basis in AJ partnership was $90,000 (instead of $46,000)?
c. How, if at all, would your answer to Part a. change if the cash distribution was $50,000 (instead of $10,000)?