Last December 31, Ramon sold the 10 percent interest in the Del Sol Partnership that he had

Question:

Last December 31, Ramon sold the 10 percent interest in the Del Sol that he had held for two years to Garrett for $400,000. Prior to selling his interest, Ramon's basis in Del Sol was $200,000 which included a $100,000 share of nonrecourse debt allocated to him.
a. What is Garrett's tax basis in his interest?
b. If Garrett sells his interests three months after receiving it and recognizes a gain, what is the character of his gain?
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...