Taxes: Partnership Sales & Terminations Flashcards Preview

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Flashcards in Taxes: Partnership Sales & Terminations Deck (2)
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1

Taxes:
Partnership Sales & Terminations
Sale of Partnership Interest

Sale of Partnership Interest
- sale results in gain/loss using outside basis
- any portion of gain/loss due to hot assets is not eligible for capital gain treatment

2

Taxes:
Partnership Sales & Terminations
Hot Assets

Hot Assets
- inventory or unrealized AR
- selling partner must allocate portion of proceeds to these and report as ordinary income
- remainder allocated to partner's capital asset interest and result in capital gain/loss

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