BE AS CLEAR, AND DETAILED AS POSSIBLE, DO NOT CHOOSE CHAT GPT TO ANSWER THE QUESTION.

Your clients, OMAR and NONO, formed a partnership called Randolph Real Estate in $2018.$OMAR contributed two pieces of land to the partnership that were used in the partnership$$s operations:

Parcel A: At the time of contribution, the parcel had an FMV of $$100,000$ and a basis of $$70,000.$ This parcel was land that OMAR held for investment prior to contributing it to the partnership. The current FMV of the land is $$125,000.$

Parcel B: At the time of contribution, the parcel had an FMV of $$140,000$ and a basis of $$95,000.$ This parcel was land that OMAR held as a dealer in real estate prior to contributing it to the partnership. The current FMV of the land is $$160,000.$

The partnership is considering restructuring its operations, and the partners believe that they may not need both parcels of land any longer, so they are considering having the partnership sell one of the parcels. But they aren$$t sure if they should sell the land now or wait two years. Assume that the partnership agreement specifies that the partners allocate gains on all assets $50\%/50\%.$

In your memo to the Randolph Real Estate partners, provide an explanation of the tax implications to the partners if the partnership sells each parcel. Include an analysis of what would happen if they sell each parcel today, or two years from now.