Assume that the partnership of Jet and Jane have the balance sheet illustrated below.

Book Tax Assets: 240,000 240,000

Nonrecourse Debt: 300000

Capital Accounts : Book Tax Debt Share Outside Basis

Jet -40,000 -40,000 150,000 110,000

Jane -20,000 -20,000 150,000 130,000

What is the amount of partnership minimum gain?

Assume the partnership sells the assets for $320,000. The buyer assumes the partnership debt and pays the partnership $20,000 in cash. The general partnership profits sharing ratio is 50% to each partner. What is the TOTAL tax gain on this sale?

How much of the tax gain on sale will be allocated to Jet?

How much of the tax gain on sale will be allocated to Jane?