Gabby has an outside basis in the BJ partnership of $500. She receives as a nonliquidating distribution cash of $200 and land worth $700 in which the partnership has an inside basis of $100.
a) Does Gabby have taxable income as a result of the distribution? Why or why not?
b) What is Gabby’s basis in the land?
c) Does your answer to parts (a) and (b) change (and if so how) the cash distributed was $550
d) Assume the cash distributed was $200. Suppose the inside basis in the land was $450. What is Gabby’s basis in the land?