Rita sells her 25% interest in the RSTU Partnership to Nancy for $90,000 cash.At the end of the year prior to the sale,Rita's basis in RSTU was $60,000.The partnership allocates $12,000 of income to Rita for the portion of the year she was a partner.On the date of the sale,the partnership assets and the agreed fair market values were as follows.

Determine the amount and character of any gain that Rita recognizes on the sale.

Question

Rita sells her 25% interest in the RSTU Partnership to Nancy for $90,000 cash.At the end of the year prior to the sale,Rita's basis in RSTU was $60,000.The partnership allocates $12,000 of income to Rita for the portion of the year she was a partner.On the date of the sale,the partnership assets and the agreed fair market values were as follows.
  
Determine the amount and character of any gain that Rita recognizes on the sale.

Quizplus · Accepted Answer

The Answer of Rita sells her 25% interest in the RSTU Partnership to Nancy for $90,000 cash.At the end of the year prior to the sale,Rita's basis in RSTU was $60,000.The partnership allocates $12,000 of income to Rita for the portion of the year she was a partner.On the date of the sale,the partnership assets and the agreed fair market values were as follows.
  
Determine the amount and character of any gain that Rita recognizes on the sale.

Rita Sells Her 25% Interest in the RSTU Partnership to Nancy