"The land is a Section 1231 asset

MD General Partnership, a medical supplies business, states in its partnership agreement that Meredith and Derek agree to split profits and losses according to a 40/60 ratio. Additionally, the partnership will provide Meredith with a $15,000 guaranteed payment for services she provides to the partnership. MD Partnership reports the following revenues, expenses, gains, losses, and distributions for its current taxable year: Gain on Sale of Land* MACRS Depreciation Charitable Contributions Sales Interest Income Cost of Goods Sold Section 179 Expense Tax-exempt Income Other Income S4,OOO 7,500 12,500 40,000 500 32,000 7,000 2,000 5,000 "The land is a Section 1231 asset