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21-2
Issues
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Hot Assets
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Example 21-1/4
Last year Chanzz Inc. sold Its 30 percent Interest In CCS
on June 30 to Greg Randall. Greg paid Chanzz Inc.
$100,000 for its interest in CCS. Chanzz's share of CCS
liabilities as of June 30 was $24,000. Chanzz Inc.'s basis in
its CCS interest at the sale date was $105,000 (including its
share of CCS's liabilities). 1) What amount of gain did
Chanzz recognize on the sale? What is the character of
Chanzz's gain? (equipment held less than one year)
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of partnership interests
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Operating Distributions
Usually
Operating Distributions
Partner simply reduces his/her (outside) basis in
the partnership interest by the amount of the
distribution
Partnerships basis in its remaining assets
remains unchanged
Partner never recognizes a loss from an
operating distribution
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Liquidating Distributions
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Liquidating Distributions
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Liquidating Distributions
When
Gain recognized
N/A
N/A
Loss recognized
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Example 21-16
(Outside basis>Inside basis & money and
hot assets)
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Liquidating Distributions
Then
The
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Liquidating Distributions
How
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