Assuming KAS’s operating agreement provides for an interim closing of the books when partners’ interests change during the year, what is Steven’s basis in his partnership interest on March 1 just prior to the sale? b. What is the amount and character of Steven’s recognized gain or loss on the sale? c. What is Juan’s initial basis in the partnership interest? d. What is the partnership’s basis in the assets following the sal
Allison, Keesha, and Steven each own equal interests in KAS
Tax Basis FMV
Cash $ 30,000 $ 30,000
Land held for investment 30,000 60,000
Totals $ 60,000 $ 90,000
a. Assuming KAS’s operating agreement provides for an interim closing of the books when partners’ interests change during the year, what is Steven’s basis in his partnership interest on March 1 just prior to the sale?
b. What is the amount and character of Steven’s recognized gain or loss on the sale?
c. What is Juan’s initial basis in the partnership interest?
d. What is the partnership’s basis in the assets following the sale?
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