Zayde is a 1/3 partner in the ARZ partnership with an outside basis of $156,000 on January 1. Zayde sells his partnership interest to Thomas on January 1ˢᵗ for $180,000 cash. The ARZ Partnership has the following assets and no liabilities as of January 1:

The equipment was purchased for $360,000 and the partnership has taken $90,000 of depreciation. The stock was purchased 3 years ago. What is the amount and character of Zayde's gain or loss on the sale of his partnership interest?

Question

Zayde is a 1/3 partner in the ARZ partnership with an outside basis of $156,000 on January 1. Zayde sells his partnership interest to Thomas on January 1ˢᵗ for $180,000 cash. The ARZ Partnership has the following assets and no liabilities as of January 1:
  
The equipment was purchased for $360,000 and the partnership has taken $90,000 of depreciation. The stock was purchased 3 years ago. What is the amount and character of Zayde's gain or loss on the sale of his partnership interest?

Quizplus · Accepted Answer

The Answer of Zayde is a 1/3 partner in the ARZ partnership with an outside basis of $156,000 on January 1. Zayde sells his partnership interest to Thomas on January 1ˢᵗ for $180,000 cash. The ARZ Partnership has the following assets and no liabilities as of January 1:
  
The equipment was purchased for $360,000 and the partnership has taken $90,000 of depreciation. The stock was purchased 3 years ago. What is the amount and character of Zayde's gain or loss on the sale of his partnership interest?

Zayde Is a 1/3 Partner in the ARZ Partnership with an Outside