George's basis in his partnership interest is $100,000,including his share of partnership debt.Sarah buys George's partnership interest for $60,000 cash and she assumes George's $60,000 share of the partnership's debt.If the partnership owns no hot assets,George will recognize a capital loss of $40,000.

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The Answer of George's basis in his partnership interest is $100,000,including his share of partnership debt.Sarah buys George's partnership interest for $60,000 cash and she assumes George's $60,000 share of the partnership's debt.If the partnership owns no hot assets,George will recognize a capital loss of $40,000.

George's Basis in His Partnership Interest Is $100,000,including His Share