Emanual is a 10% limited partner in the EVI limited partnership. He exchanges his partnership interest in

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Emanual is a 10% limited partner in the EVI limited partnership. He exchanges his partnership interest in EVI for a 20% limited partnership interest in DRI. Both partnerships are in the oil drilling business. Emanual's adjusted basis for his EVI partnership interest is $100,000, and the fair market value of the partnership interest he receives in DRI is $145,000.
a. What is Emanual's recognized gain or loss associated with the exchange?
b. Would the answer in (a) be different if Emanual exchanged a general partnership interest for a general partnership interest? Explain.
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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South Western Federal Taxation 2014 Comprehensive Volume

ISBN: 9781285180922

37th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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