Question: Gail and Harry own the GH Partnership which has conducted

Gail and Harry own the GH Partnership, which has conducted business for 10 years. The bases for their partnership interests are $100,000 for Gail and $150,000 for Harry. GH Partnership has the following assets:
Gail and Harry sell their partnership interests to Keith and Liz for $307,000 each.
a. Determine the tax consequences of the sale to Gail, Harry, and GH Partnership.
b. From a tax perspective, would it matter to Keith and Liz whether they purchase Gail's and Harry's partnership interests or the partnership assets from GH Partnership?

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  • CreatedSeptember 09, 2015
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