Carmello is a one-third partner in the CDW Partnership with equal inside and outside bases. On December
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Carmello is a one-third partner in the CDW Partnership with equal inside and outside bases. On December 31, Carmello sells his interest to Conrad for $107,000 cash. CDW makes a §754 election and its balance sheet as of December 31 is as follows: (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
Basis | FMV | |
---|---|---|
Cash | $ 58,350 | $ 58,350 |
Capital asset (nondepreciable) | 122,100 | 243,500 |
Total | $ 180,450 | $ 301,850 |
Carmello, capital | $ 60,150 |
---|---|
Doug, capital | 60,150 |
Wendy, capital | 60,150 |
Total | $ 180,450 |
What is the amount and sign (positive or negative) of Conrad's special basis adjustment? If CDW sells the capital asset next year for $297,900, what is the amount of gain Conrad will recognize because of the sale?
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date: