Question
Buddy, an individual, has a 55% capital and profits interest in a partnership and contributed six acres of land to the partnership. The property had
Buddy, an individual, has a 55% capital and profits interest in a partnership and contributed six acres of land to the partnership. The property had a fair market value of $41,000. Buddy's basis in the property was $35,000. Two years later, the partnership sold the land to an unrelated party for $44,000.
What amount of gain on the sale should be allocated to Buddy?
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South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
39th Edition
978-1305399884
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