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Mark Cheatem is a partner in the troubled law firm of Dewey Cheatem & Howe. Mark has a tax basis capital account of $851,293. The
Mark Cheatem is a partner in the troubled law firm of Dewey Cheatem & Howe. Mark has a tax basis capital account of $851,293. The other partners are seeking to redeem his interest and have offered him a cash payment of $500,000 to leave the firm and retire. Mark is especially fond of his office furniture and would like to receive it as part of his redemption package because it will look nice in his home office. The furniture has a basis of $5,000 in the hands of the partnership. The fair market value of the furniture is estimated to be $10,000. The negotiations get rather tense but the parties finally agree to pay
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