Exercise 21-24 (LO. 13) Heather sells land adjusted basis, $75,000; fair market value $95,000 partnership pays her only $50,000 for the land. to a partnership in which she contro s an 80% capita interest. The a. Heather's realized loss cannot be recognized. Feedback Check My Work Certain transactions between a partner and the partnership are treated as if the partner were an outsider, dealing with the partnership at arm's length.Loan transactions, rental payments, and sales of property between the partner and the partnership are generally treated in this manner. b. The partnership later sells the land to a third party for $80,000. The partnership has a realized gain of and a recognized gain of on its sale of the land