Partnership is owned 25% each by A, his wife, his wife’s father and X Corporation, in which A is a 50% shareholder. What are the tax consequences to the parties involved in the following sales?
(a) During the year the partnership sells A some land in which it has a basis of $50,000 for its fair market value of $40,000. In the succeeding year, A sells the land to B for $45,000.
(b) Same as (a), above, except that the first sale is to a second partnership also owned by the same parties except that an unrelated party owns a 25% interest and X Corporation owns no interest in the second partnership. The second partnership then resells the land to B for $45,000.
(c) A sells depreciable equipment in which he has an adjusted basis of $20,000 to the partnership for $30,000.
(d) A’s wife sells residential rental property held by her as a capital asset to the partnership for $120,000. She had a $100,000 basis in the property. The partnership is in the housing rental business.
(e) Same as (d), above, except that the partnership is in the real estate sales business.