Joan is a 1/3 partner in the PDJ Partnership. On May 1, Joan sells her interest to Freddie for a cash payment of $75,000. On January 1, Joan's basis in PDJ is $57,000. PDJ generates $60,000 of ordinary income and $9,000 of tax-exempt income during the first four months of the year. PDJ has the following assets and no liabilities at the sale date: $\begin{array}{lll}
&Basis&\text{Fair Market Value}\
\hline
\text { Cash } & \$ 45,000 & \$ 45,000 \
\text { Land held for investment } & \$ 45,000 & \$ 90,000
\end{array}$ What is the amount and character of Joan's gain or loss on the sale?

Question

Quizplus · Accepted Answer

The Answer of Joan is a 1/3 partner in the PDJ Partnership. On May 1, Joan sells her interest to Freddie for a cash payment of $75,000. On January 1, Joan's basis in PDJ is $57,000. PDJ generates $60,000 of ordinary income and $9,000 of tax-exempt income during the first four months of the year. PDJ has the following assets and no liabilities at the sale date: $\begin{array}{lll}
&Basis&\text{Fair Market Value}\
\hline
\text { Cash } & \$ 45,000 & \$ 45,000 \
\text { Land held for investment } & \$ 45,000 & \$ 90,000
\end{array}$ What is the amount and character of Joan's gain or loss on the sale?

Joan Is a 1/3 Partner in the PDJ Partnership What Is the Amount and Character of Joan's Gain or May