David sells his one-third partnership interest to Diana for $60,000 when his basis in the partnership interest is $48,000. On the date of sale, the partnership has no liabilities and the following assets:
$$\begin{array} { l l l }
\text { Assets } & \text { Basis } &\text { \underline { F M V }} \
\text { Cash } & \$ 40,000 & \$ 40,006 \
\text { Inventory } & 18,070 & 27,090 \
\text { Building } & 75,000 & 102,000 \
\text { Land } & 11,000 & 11,000
\end{array}$$ The building is depreciated on a straight-line basis. What tax issues should David and Diana consider with respect to the sale transaction?

Question

David sells his one-third partnership interest to Diana for $60,000 when his basis in the partnership interest is $48,000. On the date of sale, the partnership has no liabilities and the following assets:
 $$\begin{array} { l l l } 
\text { Assets } & \text { Basis } &\text { \underline { F M V }} \
\text { Cash } & \$ 40,000 & \$ 40,006 \
\text { Inventory } & 18,070 & 27,090 \
\text { Building } & 75,000 & 102,000 \
\text { Land } & 11,000 & 11,000
\end{array}$$ The building is depreciated on a straight-line basis. What tax issues should David and Diana consider with respect to the sale transaction?

Quizplus · Accepted Answer

The Answer of David sells his one-third partnership interest to Diana for $60,000 when his basis in the partnership interest is $48,000. On the date of sale, the partnership has no liabilities and the following assets:
 $$\begin{array} { l l l } 
\text { Assets } & \text { Basis } &\text { \underline { F M V }} \
\text { Cash } & \$ 40,000 & \$ 40,006 \
\text { Inventory } & 18,070 & 27,090 \
\text { Building } & 75,000 & 102,000 \
\text { Land } & 11,000 & 11,000
\end{array}$$ The building is depreciated on a straight-line basis. What tax issues should David and Diana consider with respect to the sale transaction?

David Sells His One-Third Partnership Interest to Diana for $60,000