jenny has a $69,300 basis in her 50 percent partnership interest in the jm partnership before receiving any distributions. this year jm makes a proportionate operating distribution to jenny of a parcel of land with an $107,500 fair value and a $86,800 basis to jm. the land is encumbered with a $41,400 mortgage (jm's only liability). what is jenny's basis in the land and her remaining basis in jm after the distribution?

After the distribution, Jenny's basis in the property was $90,000 and her remaining basis in jm are $3200.

A partnership is an agreement between parties who are known as business partners to work together to further their shared interests. A partnership is a type of business in which two or more people formally agree to be co-owners, share in the organization's profits or losses, and divide the responsibilities for its management.

Calculation:

$69,300 Outside basis

+ $20,700 [Jenny's basis is raised for the remaining debt because she already owned $20700 (41400 * 50%) of it.]

= $90,000

- $86,800 Carryover basis of land

$3,200 Basis in her partnership interest was retained

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