Marty is a 40 percent owner of MB Partnership.Marty has decided to sell his interest in the business to Emilio for $100,000 cash plus the assumption of his share of MB's liabilities.Assume Marty's inside and outside basis in MB are equal.MB shows the following balance sheet as of the sale date:
What is the amount and character of Marty's recognized gain or loss?

Question

Marty is a 40 percent owner of MB Partnership.Marty has decided to sell his interest in the business to Emilio for $100,000 cash plus the assumption of his share of MB's liabilities.Assume Marty's inside and outside basis in MB are equal.MB shows the following balance sheet as of the sale date:
   What is the amount and character of Marty's recognized gain or loss?

Quizplus · Accepted Answer

The Answer of Marty is a 40 percent owner of MB Partnership.Marty has decided to sell his interest in the business to Emilio for $100,000 cash plus the assumption of his share of MB's liabilities.Assume Marty's inside and outside basis in MB are equal.MB shows the following balance sheet as of the sale date:
   What is the amount and character of Marty's recognized gain or loss?

Marty Is a 40 Percent Owner of MB Partnership