Question
Anna owns a 60% interest in a general partnershipThe Aero Partnershipwhich she sells to the 2 remaining partnersJanet and Ashley. The 3 partners have agreed
Anna owns a 60% interest in a general partnership—The Aero Partnership—which she sells to the 2 remaining partners—Janet and Ashley. The 3 partners have agreed that Anna will receive $135,000 in cash from the sale. Anna’s basis in the partnership interest before the sale is $108,000, which includes her $27,000 share of partnership recourse liabilities. The partnership has assets with a $270,000 FMV and a $180,000 adjusted basis.
What issues should Anna, Janet, and Ashley consider before this sale takes place?
Step by Step Solution
3.54 Rating (151 Votes )
There are 3 Steps involved in it
Step: 1
Given the information provided above Anna would realize 162000 from this transaction The 135000 in c...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Taxation For Decision Makers 2014
Authors: Shirley Dennis Escoffier, Karen Fortin
6th Edition
978-1118654545
