Example. Partner B, with a partnership interest having an adjusted basis to him of $12,000, retires from the partnership and receives cash of $2,000, and real property with an adjusted basis to the partnership of $6,000 and a fair market value of $14,000. The basis of the real property to B is $10,000 (B's basis for his partnership interest, $12,000, reduced by $2,000, the cash distributed).
Example.
Assets | ||
Adjusted basis to PRS | Fair market value | |
Cash | $1,500 | $1,500 |
Inventory | 3,500 | 4,000 |
Asset X | 2,000 | 4,000 |
Asset Y | 4,000 | 5,000 |
26 C.F.R. §1.732-1