Roberta Wynn has been a partner in the Cato Partnership for a number of years With the permission of the other partners, she sells her partnership interest to a third party At the time of sale, her basis in her partnership is only $100 For the portion of the year to the date of sale, she is allocat...

Issue Will Roberta be allowed to deduct the full amount of her loss in the year she disposes of her ...

Roberta Wynn has been a partner in the Cato Partnership for a number of years. With the

Question:

Roberta Wynn has been a partner in the Cato for a number of years. With the permission of the other partners, she sells her interest to a third party. At the time of sale, her basis in her is only $100. For the portion of the year to the date of sale, she is allocated a loss of $2,100. If she receives $10,000 for her interest, what are the tax consequences of the sale and the results of operations in her final year?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...