Question: Thomas Settleton owned an interest as a general partner in LBO partnership. Settleton was not a material participant in the activity. His basis was $

Thomas Settleton owned an interest as a
general partner in LBO partnership. Settleton
was not a material participant in the activity.
His basis was $25,000 on the date he gifted the
LBO partnership interest to his son, Willard.
Suspended losses amounted to $40,000 as
of that date. What are the federal income tax
consequences of the gift to the son?
Thomas Settleton owned an interest as a general partner in LBO

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