Heather sells land adjusted basis 75 000 fair market value 95 000
Heather sells land (adjusted basis $75,000; fair market value, $95,000) to a partnership in which she controls an 80% capital interest. The partnership pays her only $50,000 for the land.
a. How much loss does Heather realize and recognize?
b. If the partnership later sells the land to a third party for $80,000, how much gain does that partnership realize and recognize?
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