Rochelle owns 40 percent of a partnership and her brother owns the remaining 60 percent interest.During the current tax year, Rochelle sold a building to the partnership for $180,000, to be used for the partnership's office.She had held the building for 3 years at the time of the sale.
a.Assuming Rochelle's basis in the building was $200,000, what is the amount and nature of her gain or loss?
b.Assuming Rochelle's basis in the building was $150,000, what is the amount and nature of her gain or loss?

Question

Rochelle owns 40 percent of a partnership and her brother owns the remaining 60 percent interest.During the current tax year, Rochelle sold a building to the partnership for $180,000, to be used for the partnership's office.She had held the building for 3 years at the time of the sale.
a.​Assuming Rochelle's basis in the building was $200,000, what is the amount and nature of her gain or loss?
b.​Assuming Rochelle's basis in the building was $150,000, what is the amount and nature of her gain or loss?

Quizplus · Accepted Answer

The Answer of Rochelle owns 40 percent of a partnership and her brother owns the remaining 60 percent interest.During the current tax year, Rochelle sold a building to the partnership for $180,000, to be used for the partnership's office.She had held the building for 3 years at the time of the sale.
a.​Assuming Rochelle's basis in the building was $200,000, what is the amount and nature of her gain or loss?
b.​Assuming Rochelle's basis in the building was $150,000, what is the amount and nature of her gain or loss?

Rochelle Owns 40 Percent of a Partnership and Her Brother