Liquidating property distribution depreciation
For many years, the basis of property to distributed partners was allocated under Sec.
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Changes made by the Taxpayer Relief Act of 1997 and the Internal Revenue Service Restructuring and Reform Act of 1998 altered the way basis is allocated to property distributed to partners in liquidating and nonliquidating distributions. This article's many examples illuminate these rules and offer planning guidance.Example 1: A, a partner in ABC Partnership, has a ,000 basis in her partnership interest, after liabilities.
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