Gamila, James, Helen, and Carlos each owns an equal interest in GJHC Partnership, a calendar year end, cash- method entity. On January 1 of the current year, James's basis in his partnership interest is $73,750. For the taxable year, the partnership generates $80, 400 of ordinary income and $36,000 of dividend income. For the first five months of the year, GJHC generates $25, 750 of ordinary income and no dividend income. On June 1, James sells his partnership interest to Robert for a cash payment of $83, 500. The partnership has the following assets and no liabilities at the sale date: Tax Basis FMV Cash $ 38, 500 S 38, 500 Land held for investment 83, 500 108, 200 Totals $ 122, 000 S 146,700 b. What are the amount and character of James's recognized gain or loss on the sale?
Gamila, James, Helen, and Carlos each owns an equal interest in GJHC
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