What is alix's basis in her remaining partnership interest

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Reference no: EM132984222

Question: Travis and Alix Weber are equal partners in the Tralix Partnership, which does not have a §754 election in place. Alix sells one-half of her interest (25 percent) to Michael Tomei for $42,000 cash. Just before the sale, Alix's basis in her entire partnership interest is $89,400, including her $42,000 share of the partnership liabilities. Tralix's assets on the sale date are as follows:

Tax Basis FMV
Cash $50,800 $50,800
Inventory 42,000 138,000
Land held for 86,000 54,800
Investment
Totals 178,800 $243,600

A) What is the amount and character of Alix's recognized gain or loss on the sale

b) What is Alix's basis in her remaining partnership interest?

c) What is Michael's basis in his partnership interest?

d) Does the sale on partnership's basis have any effect in the assets?

Reference no: EM132984222

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