Louise owns 45 percent of a partnership, and her brother owns the remaining 55 percent interest During the current tax year, Louise sold a building to the partnership for $160,000 to be used for the partnerships office She had held the building for 3 years, and it had an adjusted basis of $120,000 ...

40000 ordinary income 160000 120000 The gain is ...

Louise owns 45 percent of a partnership, and her brother owns the remaining 55 percent interest. During

Question:

Louise owns 45 percent of a and her brother owns the remaining 55 percent interest. During the current tax year, Louise sold a building to the for $160,000 to be used for the partnership’s office. She had held the building for 3 years, and it had an adjusted basis of $120,000 at the time of the sale. What is the amount and nature of Louise’s gain on this transaction?
$______________
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...