What is the partnership basis in the land

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Reference no: EM132779398

Allison, Keesha, and Steven each own equal interests in KAS partnership, a calendar year-end, cash-method entity. On January 1 of the current year, Steven's basis in his partnership interest is $27,000. During January and February, the partnership generates $30,000 of ordinary income and $1,500 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $45,000.

The partnership has the following assets and no liabilities at the sale date:

                                        Tax Basis    FMV
Cash    $ 30,000 $ 30,000
Land held for investment 30,000 60,000
Totals    $ 60,000                  $ 90,000

Problem 1: Continuing the prior problem what is the partnership's basis in the Land held for investment following the sale of the partnership interest from Steven to Juan?

Reference no: EM132779398

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