What will be the amount realized (i.e., selling price) by T on the sale to the unrelated buyer? What is T’s basis in the partnership interest at the date of sale? How much gain or loss will T recognize on the sale? What will be the buyer’s tax basis in the newly acquired interest in Burlington Enterprises?
Burlington Enterprises LLC is treated as a partnership for purposes of the federal income tax. It has the following assets and liabilities:
|
|
Basis |
FMV |
|
Cash |
$39,000 |
$39,000 |
|
Land |
50,000 |
200,000 |
|
Other capital assets |
100,000 |
190,000 |
|
Totals |
$189,000 |
$429,000 |
|
|
|
|
|
Recourse liabilities |
$84,000 |
$84,000 |
|
Capital, B |
35,000 |
115,000 |
|
Capital, L |
35,000 |
115,000 |
|
Capital, T |
35,000 |
115,000 |
|
Totals |
$189,000 |
$429,000 |
The three partners share equally in
What will be the amount realized (i.e., selling price) by T on the sale to the unrelated buyer?
What is T’s basis in the partnership interest at the date of sale?
How much gain or loss will T recognize on the sale?
What will be the buyer’s tax basis in the newly acquired interest in Burlington Enterprises?
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