47. Reggie contributed $10,000 in cash and a capital asset he had held for three years with a fair market value of $20,000 and tax basis of

$10,000 for a 5 percent capital and profits interest in Green Valley LLC.

a. If Reggie sells his LLC interest 13 months later for $30,000 when the tax basis in his partnership interest is still $20,000, how much gain does he report and what is its character?

b. If Reggie sells his LLC interest two months later for $30,000 when the tax basis in his partnership interest is still $20,000, how much gain does he report and what is its character? [Hint: See Reg. §1.1223-3.]