Statement regarding the sale of a partnership interest

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Which of the following statements is true regarding the sale of a partnership interest?

a. The selling partner's share of partnership liabilities is disregarded in determining the gain or loss on the sale of a partnership interest

b. For purposes of computing the selling partner's gain or loss, the partner's basis in the partnership interest is determined as of the last day of the partnership tax year ending before the year in which the interest is sold.

c. No reporting is required if a partner sells an interest in a partnership

d. The selling partner could be required to report both ordinary income and a capital loss on sale of the partnership interest.

e. The partner's share of partnership "hot assets" is disregarded in determining the character of the partner's gain on the sale of the partnership interest.

Reference no: EM13140369

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