On August 31 of the current tax year, the balance sheet of the RBD General Partnership is as follows:
On that date, Rachel sells her one-third partnership interest to Lisa for $300,000, including cash and relief of Rachel's share of the nonrecourse debt. The nonrecourse debt is shared equally among the partners. Rachel's outside basis for her partnership interest is $250,000 (including her share of partnership debt). How much capital gain and/or ordinary income will Rachel recognize on the sale?

Question

On August 31 of the current tax year, the balance sheet of the RBD General Partnership is as follows:  
On that date, Rachel sells her one-third partnership interest to Lisa for $300,000, including cash and relief of Rachel's share of the nonrecourse debt. The nonrecourse debt is shared equally among the partners. Rachel's outside basis for her partnership interest is $250,000 (including her share of partnership debt). How much capital gain and/or ordinary income will Rachel recognize on the sale?

Quizplus · Accepted Answer

The Answer of On August 31 of the current tax year, the balance sheet of the RBD General Partnership is as follows:  
On that date, Rachel sells her one-third partnership interest to Lisa for $300,000, including cash and relief of Rachel's share of the nonrecourse debt. The nonrecourse debt is shared equally among the partners. Rachel's outside basis for her partnership interest is $250,000 (including her share of partnership debt). How much capital gain and/or ordinary income will Rachel recognize on the sale?

On August 31 of the Current Tax Year, the Balance