Question: Wylie receives cash of 145 000 in liquidation of his partnership

Wylie receives cash of $145,000 in liquidation of his partnership interest, in which he has a basis of $110,000. The partnership owns no hot assets. After following all of the classification requirements of § 736, $100,000 of this amount is classified as a property payment and $45,000 is classified as a guaranteed payment.
As a result of the liquidation proceeds, how much will Wylie recognize as a capital gain or loss and how much will be ordinary income?

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  • CreatedSeptember 09, 2015
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