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 Sheet