What are the tax consequences to the distributee-partner(s) and the donee of an inter- vivos gift of previously distributed inventory?
ACCOUNTING 367 FACTSThe taxpayer is multi-member entity, with each member holding a 50% membershipinterest. The taxpayer is primarily engaged in the purchase and sale of fine artistic pieces. TheLLC intends to make a non-liquidating distribution of three (3) paintings, which are all held asinventory. Following the distribution, the distributee-member(s) intend to give an inter-vivos giftof […]