Amanda owns 30% of the interests in Becks Partnership. Becks Partnership is taxed as a partnership and has a calendar year-end. Amanda sells her partnership interest to Nick for a cash payment of $300,000. Her basis in the partnership interest is $137,400 at the time of the sale. The partnership had the following assets at the time of the sale. It did not have any liabilities. Tax Basis FMV Cash $58,000 $58,000 Inventory 135,000 172,000 Land held for investment 265,000 770,000 Totals $458,000 $1,000,000 b. What is the character of gain or loss recognized by Amanda on the sale of her partnership interest?
Amanda owns 30% of the interests in Becks
Tax Basis FMV
Cash $58,000 $58,000
Inventory 135,000 172,000
Land held for investment 265,000 770,000
Totals $458,000 $1,000,000
b. What is the character of gain or loss recognized by Amanda on the sale of her partnership interest?
Step by step
Solved in 2 steps with 2 images
