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, consisting of 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, consisting of 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, consisting of 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