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Level 2
August 17, 2022
Question

Partnership Liquidation Sec 751

  • August 17, 2022
  • 1 reply
  • 9 views

A partnership liquidates and distributes mulitiple rental properties. Even though the fair market value of the property distributed to each partner is approximately the same, some have greater accumulated depreciation than others. This is a dispropotionate distribution under 751. Is a computation that the individual partner makes? Or does the partnership report this?

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1 reply

sjrcpa
Level 15
August 17, 2022

Do you mean the adjusted basis for each property is different?

The more I know the more I don’t know.
dthorntonAuthor
Level 2
August 17, 2022

Correct. The basis of each property is different.