Scott sells his one-third partnership interest to Sally for $43,000 when his basis in the...
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Accounting
Scott sells his one-third partnership interest to Sally for $43,000 when his basis in the
partnership interest is $33,000. On the date of sale, the partnership has no liabilities and
the following assets:
Assets Basis FMV
Cash $30,000 $30,000
Inventory 12,000 21,000
Building 45,000 60,000
Land 12,000 18,000
The partnership has claimed $5,400 of straight-line depreciation on the building. What
tax issues should Scott and Sally consider with respect to the sale transaction?
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