Assignment task:
Valentina Martinez invested in a partnership three years ago. The partnership holds several parcels of land. Valentina is considering having the partnership distribute one of the parcels of land to her this year. Some of the parcels that the partnership holds are held for investment and others are held as inventory. Valentina would like us to advise her on the implications of the potential distribution.
In order to provide guidance and a recommendation for Valentina on what she should consider with regard to the distribution, research, read, and analyze the Sanford Homes, TC Memo 1986-404. You are to summarize the key points in a case brief. What you learn from the case will help you to best advise your clients.
Peracchi v. Commissioner