a). Assuming KAS's operating agreement provides for an interim closing of the books when partners' interests change during the year, what is Steven's basis in his partnership interest on March 1 just prior to the sale? 

b). What is the amount and character of Steven's recognized gain or loss on the sale? 

c). What is Juan's initial basis in the partnership interest? 

d). What is the partnership's basis in the assets following the sale?

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(The following information applies to the questions displayed below.) Allison, Keesha, and Steven each own equal interests in KAS Partnership, a calendar-year-end, cash-method entity. On January 1 of the current year, Steven's basis in his partnership interest is $30,750. During January and February, the partnership generates $34,950 of ordinary income and $5,670 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $53,250. The partnership has the following assets and no liabilities at the sale date: Tax Basis $37,500 $ 37,500 PMV Cash Land held for investment 37,500 75,000 Totals $75,000 $112,500 (The following information applies to the questions displayed below.) Allison, Keesha, and Steven each own equal interests in KAS Partnership, a calendar-year-end, cash-method entity. On January 1 of the current year, Steven's basis in his partnership interest is $30,750. During January and February, the partnership generates $34,950 of ordinary income and $5,670 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $53,250. The partnership has the following assets and no liabilities at the sale date: Tax Basis $37,500 $ 37,500 PMV Cash Land held for investment 37,500 75,000 Totals $75,000 $112,500

Answer rating: 100% (QA)

1890 a Stovons basis in his partnership interest in march on Jan ist sborens bass in the partner... View the full answer