(solution) Phil a 35% partner of SPO Partnership has a basis of $5,000. In a

(solution) Phil a 35% partner of SPO Partnership has a basis of $5,000. In a

Phil a 35% partner of SPO Partnership has a basis of $5,000. In a non-liquidating pro-rata distribution, Phil receives inventory worth $2,500 with an adjusted basis of $1,500 and land worth $2,500 with an adjusted basis of $2,000.

My task is to describe the tax consequences of the distribution with regard to the recipient partner?s realized gain or loss from the distribution, the partner?s basis in the property received in the distribution, and the partner?s basis in the partnership immediately after the distribution.