John holds 10 percent interest in SS Partnership for past three years. His basis in the partnership is $200,000 which includes a $100,000 share of nonrecourse debt that is allocated to him. 1. If John sells his interest in the partnership to Sally for $400,000, what would be Sally's tax basis in the partnership interest?

Answer rating: 100% (QA)

Answer Since Sally has purchased the part... View the full answer