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Business, 05.05.2020 17:42 simplekaryme0

On November 1, Ashton sells her interest in XYZ partnership to Wayne for $200,000 cash and a release of liability of $30,000. Ashton’s basis at the beginning of the year was $125,000 (including the $30,000 of liability). Ashton’s share of income through November 1 was $45,000, and she received a $15,000 cash distribution earlier in the year. What are the tax consequences to Ashton of the sale of her partnership interest?

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On November 1, Ashton sells her interest in XYZ partnership to Wayne for $200,000 cash and a release...
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