Bob has a $10,000 outside basis in his 10% interest in Hot LLC and sells his interest to Sally on January 1, 20x1 for $10,000 cash. Hot has no debt. Hot has inventory with a basis of $20,000 and a FMV of $30,000. True or False: Bob has no gain or loss to recognize on sale of his partnership interest. Bob has a $10,000 outside basis in his 10% interest in Hot LLC and sells his interest to Sally on January 1, 20x1 for $10,000 cash. Hot has no debt. Hot has inventory with a basis of $20,000 and a FMV of $30,000. True or False: Bob has no gain or loss to recognize on sale of his partnership interest. True False

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