Joshua is an equal partner with his parents in the Stilt Partnership.In 2011,he sells a tract of undeveloped land (basis of $250,000)to Stilt for its fair market value of $240,000.In 2014,Stilt resells the land to the local school district for $255,000.
a.What are the tax consequences of the 2011 sale?
b.Of the 2014 sale?

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The Answer of Joshua is an equal partner with his parents in the Stilt Partnership.In 2011,he sells a tract of undeveloped land (basis of $250,000)to Stilt for its fair market value of $240,000.In 2014,Stilt resells the land to the local school district for $255,000.
a.What are the tax consequences of the 2011 sale?
b.Of the 2014 sale?

Joshua Is an Equal Partner with His Parents in the Stilt