Josh holds a general partnership interest in the JLK Partnership having a $40,000 basis and a $60,000 FMV The JLK Partnership is a limited partnership that engages in real estate activities Diana has an interest in the CDE Partnership having a $20,000 basis and a $60,000 FMV The CDE Partnership is ...

a A taxable transaction occurs The recognized gains for Josh and Dia ...

Josh holds a general partnership interest in the JLK Partnership having a $40,000 basis and a $60,000

Question:

Josh holds a general interest in the JLK having a $40,000 basis and a $60,000 FMV. The JLK is a limited that engages in real estate activities. Diana has an interest in the CDE having a $20,000 basis and a $60,000 FMV. The CDE is a general that also engages in real estate activities. Neither has any Sec. 751 assets or any liabilities.
a. What are the tax implications if Josh and Diana simply exchange their interests?
b. What are the tax implications if instead Diana exchanges her general interest in the CDE for a limited interest in the same (and Josh retains his general interest in the JLK 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...