P/ship Sec 721

Question 0

At risk balance

Answer 0

1. Tax basis in p/ship. 2. Any loans to p/ship. 3. The debts of business. The total amount that could eventually be reported as a loss from the p/ship

Question 1

Property 60%. FMV 60k. AB 50k Liab 10k

Answer 1

P/ship interest. 46k. Recognized gain 0 Boot = net Liab 4k < AB of P 50k = 0