Question: Sue and Linda are equal partners in a partnership. Both partners had a basis of $160,000 on the date Sue decides to sell 1/2 of her share. On that date, Sue sells 1/2 of her interest to Alice for $60,000 cash.
Partnership assets on the sale date were:
Basis FMV Inc(dec)
Cash $100,000 $100,000 0
Acc Rec $ 80,000 $ 90,000 10,000
Equip $100,000 $120,000 20,000
Total $280,000 $310,000 30,000
A. Based on the partners basis and FMV of its assets - is there any Sec 751 property?
B. What is the amount and character of Sue's recognized gain or loss on the sale? What is her remaining basis in his partnership interest?